Companies are treating senior executives as a single tier when it comes to long-term incentive (LTI) awards, says Aon Hewitt’s ‘Global Long-Term Incentives Policies and Practices’ survey. It found grants to executives are homogeneous regardless of global region or country. “As the world becomes more global and mobile, executive responsibilities are increasingly extending beyond a single geographic region,” says Kavita Maharaj, senior consultant in Aon Hewitt’s global long-term incentive and executive compensation practice. “Companies expect a senior executive in Asia Pacific to be assigned and relocated to European operations and they have designed their LTI awards in a way that can be easily aligned with worldwide business goals.” It also found many companies have modified their awards so that local participants can achieve tax advantages in their county similar to long-term capital gain rates for equity holders in the U.S. Almost one-third of the companies surveyed are making modifications to their award for tax-favored compliance for their participants, up from seven per cent almost a decade ago.
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