Quick Reads

Are Performance Ratings Really a Thing of the Past?

Published: April 2019
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The Spotlight: Michael Deeks, Partner, Asset Management

Michael Deeks leads McLagan’s asset management practice, delivering performance and reward consulting services to traditional and alternative asset managers, as well as asset owners. In particular, Michael advises on broad-based and executive compensation and carried interest arrangements. His work also includes conducting benchmarking and market practice studies. Michael’s team recently launched McLagan’s Operational Due Diligence IQ Study, which provides asset managers with performance benchmarks on over 150 non-investment risk factors and best practices.

Published: April 2019
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The Rise of Islamic Banking

Islamic finance is the fastest growing sector in global banking and its potential for further growth is only increasing by the minute. As Islamic banks continue to expand in both their traditional market and into the West, what will be their key to success and what does this mean for longstanding global banks?

Published: April 2019
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Top 5 Ways to Maintain Your Salary Structure

Having a strong salary structure is crucial for determining individual employee pay. This article shares the top 5 things you should consider to successfully maintain your organization’s salary structure and remain competitive in the market.

Published: April 2019
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The Era of Low ESPP Participation Is Over

Aon has partnered with Carver Edison to aid plan sponsors in understanding the impact to financial reporting, tax accounting and company balance sheet of a Carver Edison ESPP as compared to a traditional ESPP.

Published: March 2019
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Fighting the War for Digital Talent

What should financial services firms keep in mind as they design their employee value propositions and total reward strategies to compete for top tech talent? This article discusses the evolution of financial services in the digital age, compares the industry practices of financial services and technology, and offers food for thought when adapting your firm’s talent and rewards strategies to the new digital world.

Published: March 2019
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Sizing the SaaS Sales Organization for Growth

There is no one-size-fits-all approach for how to best scale sales organizations for private software companies, but there are benchmarks and proven approaches to scale cost-effectively.

Published: March 2019
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Glass Lewis Updates Proxy Reports to Reflect Sustainability Metrics and Corporate Meetings

Glass Lewis made notable updates to its 2019 proxy season reports, including analyzing how new sustainability standards impact issuers and disclosing whether it has met with a company.

Published: March 2019
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Getting Ready for Proxy Season 2019

The executive compensation planning process gets more complex each year thanks to a steady stream of new regulations, proxy advisory firm updates or activist investor demands. For many companies, preparing proxies is top of mind this time of year. That includes learning how your executives’ pay stacks up to that of your peers and managing your company’s equity share pool and dilution. Aon’s Compensation Governance Pro (CG Pro) empowers you to more effectively manage the activities necessary to remain competitive, compliant and within budget. Let us help your company prepare for the upcoming proxy season and beyond.

Published: March 2019
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Developing a Winning People Strategy for New Types of Technology Jobs at Retail Companies

As retail companies rapidly integrate technology-related jobs to their workforce, they find hiring and retaining people with these skills requires re-examining their rewards structures.

Published: March 2019
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The Latest Salary Provisions and Their Impact on Employee Rewards

As reported in the Aon Washington Report, the last couple of weeks have seen two significant developments in the area of broad based compensation. This article summarizes proposed provisions and what employers should do next.

Published: March 2019
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Banks in India: Navigating the New RBI Guidelines

 The Reserve Bank of India (RBI) has, through a recent discussion paper, proposed new guidelines for executive compensation for private sector banks in India. The planned guidelines entail major changes to the existing guidelines, including a proposed cap on variable pay and inclusion of Employee Stock Option Plans (ESOPs) under variable pay. This article provides a quick summary of the changes that are occurring, who they will affect, and what banks should consider.

Published: March 2019
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Preparing for a Tsunami of M&A in the Global Financial Services Industry

As M&A activity continues to pick up in the global financial services industry, it’s important to determine driving factors and use the checkpoints listed below to ensure a smooth transaction for both your business operations and employees.

Published: March 2019
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Year-Over-Year Trends in Board of Director Pay

Our latest findings show that after barely moving the needle last year, board of director total compensation rose 6% this year.

Published: February 2019
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The Spotlight: Joel Davies, Partner, European Asset Management and Banking

Joel Davies is a Partner in McLagan’s European Asset Management and Banking practice, providing reward consulting services to the management and boards of banking and asset management organizations. His particular areas of focus include reward strategy, executive compensation, and remuneration regulations. Joel has acquired extensive experience across compensation, benefits, and performance management through leadership roles in consulting and corporate environments in both the UK and U.S.

Published: February 2019
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The Impact of Brexit on Talent and Rewards in Germany

Banks, insurers, and other financial services institutions are in a race against the clock to clinch licenses and bolster their continental workforces before Britain leaves the EU. Without a comprehensive trade deal between the UK and EU that covers financial services, companies risk having no replacement for lost passporting rights, which currently allow firms to serve clients across the bloc.

Published: February 2019
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Teller Compensation: Evolving Pay Strategies

Brick and mortar bank branches must embrace change. The disruption of the historical approach to branch banking comes with an opportunity for firms to evolve their human capital strategy in in a way that complements the value proposition to both employees and customers. This article discusses how advancements in retail banking are forcing firms to reevaluate their staffing, role profiles, and longstanding compensation practices for traditional branch roles, specifically the bank teller.

Published: February 2019
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How to Use Employee Mobility Data to Uncover Potential Problems in Your Workforce

Assessing and understanding employee mobility within a business is essential for unlocking insights into your workforce and organizational structure. We outline our latest research on employee mobility in the technology sector to illustrate how this analysis can benefit all companies.

Published: February 2019
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Future-Proofing Your Talent

As financial services firms work on more technology initiatives, businesses must now put the transformation of their workforce at the center of their strategy. Companies are focused on exploring new ways of working through agile methodology, redesigning their organizational structures, evaluating their entire employee value proposition to improve engagement, and making strategic investments in new skills and technology to support this evolution.

Published: February 2019
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Investors See Expanded Role for Boards of Directors in Overseeing Corporate Culture

As part of their annual shareholder engagement, State Street and BlackRock are urging boards to do more in overseeing corporate culture; this vision would greatly expand the traditional role of boards and continue to elevate ESG issues.

Published: February 2019
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The Spotlight: Gayle Appelbaum, Partner, Regional and Community Banking

Gayle Appelbaum is a Partner in McLagan’s regional and community banking consulting practice. She specializes in developing compensation plans that balance short and long-term risk while building shareholder value. Gayle focuses on the full spectrum of compensation and benefits issues, including corporate governance, pay-for-performance, risk assessment, taxation, regulatory compliance, M&A, and compensation agreement provisions.

Published: January 2019
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Building a Sustainable Rewards Program as Your Startup Matures: Lessons in Asia

With a robust startup market across Asia, it’s never too early to think about your workforce infrastructure and how it is expected to evolve as your organization matures. When designing a sustainable rewards program there are six key topics to consider, which this article examines in detail. 

Published: January 2019
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How the SEC’s Hedging Rule Will Impact Public Companies

In December 2018, the SEC was able to close the books on a pending provision from the Dodd-Frank Act by finalizing a long-awaited hedging disclosure rule. The new disclosure requires most public companies to disclose any practices or policies regarding the ability of employees and corporate directors to hedge their company’s equity securities by adding a new paragraph to the corporate governance disclosure requirements in Item 407 of Regulation S-K. The final rule is generally consistent with the rule the SEC proposed back in February 2015.

Published: January 2019
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How the SEC’s Hedging Disclosure Rule Will Impact Public Companies

The SEC finalized a long-awaited hedging rule from the Dodd-Frank Act in December 2018. The rule requires disclosure of companies’ anti-hedging policies for all employees. We explain how companies need to comply.

Published: January 2019
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It’s Time for HR to Become More Involved in Setting Sales Quotas. Here’s How.

HR professionals need to know how their company’s sales quotas shape the employee value proposition and contribute to competitive earnings and cost-of-sale measures. By becoming more involved in the quota-setting process, HR leaders will help better position the company against the headwinds of high turnover and a tightening talent pool.

Published: January 2019
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Keep Pay Structures Current Using This Job Leveling Methodology

Companies that want to build or maintain competitive pay structures must have access to the right data and tools. But rapidly changing job roles in the era of digital disruption are prompting many companies to revisit their job evaluation system.

Published: January 2019
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Credit Union Compensation Philosophy: Going Beyond “Attract, Retain, and Motivate”

What is your credit union’s compensation philosophy? When they’re well thought through, compensation philosophies can help provide an important framework for pay decisions throughout a firm. But far too often, these philosophies are antiquated, and include general phrases like “we strive to provide competitive compensation” and “the goal of our compensation structure is to attract, retain, and motivate.” While few can disagree with these types of platitudes, they are rarely helpful when making actual decisions.

Published: January 2019
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ISS Policy Changes May Make It Harder for Some Companies to Obtain Equity Share Approval

ISS’ decision to raise its scoring allocation towards the share pool duration factor and add a dilution threshold will likely lead to the most impactful changes for companies seeking shares in 2019.

Published: January 2019
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What Public Companies Should Know About New Standards for ESG Disclosure

The standards recently issued by the Sustainability Accounting Standards Board have gained traction with some institutional investors, proxy advisory firms, and even public companies.

Published: January 2019
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IRS Clarifies Tax Law Provision that Could Benefit Private Company Employees

The IRS recently released guidance about the applicability of a provision in the 2017 tax bill that could benefit employees at private companies who receive equity awards. The guidance specifies the conditions for employees to be eligible for tax relief and the responsibilities of private companies.

Published: January 2019
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