Taking stock of total C&B plans

Singapore - Even though mature markets in Europe and America may be facing a downturn, markets in Asia are on a growth trajectory. But for executives whose stock options are tied to parent companies, this may mean a diminished value in their C&B packages.

At the recent WorldatWork Total Rewards Asia Pacific Conference held recently, one of the concerns HR practitioners had was on how they can keep employee motivations high despite falling stock prices. 

Fermin Diez, director of Asia Pacific for Freescale Semiconductors says the company has already begun a shift from a shares-based plan to a cash-based plan. The reason for that, Diez says is that it is easier to maintain the line of sight for its executives. While the amount of cash a person may be entitled to in the long-term will still depend somewhat on corporate figures, but it will also be a combination corporate results. That way, top where management would still "have some say on what is going on." Furthermore, part of the bonus is also determined by individual performance. "So you get a combination of the two, and it brings the line of sight issue a little closer," he says. 

InterContinental Hotel is taking a different approach, says Tom Farmer, C&B Vice-president for InterContinental Group. For the global versus regional view, previous global functions (such as HR and finance) would have their short-term incentives stock options based on global figures. "Now we've gone 50-50," he says, "half on global results and half on regional results. We're focused regionally for line of sight, but at the same time, we're part of a global company."