Playing (and Paying) the Long Game
Challenge: Farient Advisors was engaged by this publicly traded gaming company with significant concentrated ownership to revamp its approach to long-term incentives in response to investor concerns that executive pay was not sufficiently linked to value creation and share price improvement.
Approach: Farient worked closely with the client to develop a new program, which provides significant incentives over the longer term, and is linked to both relative and absolute stock price improvement consistent with expectations in the strategic plan.
Results: The program has been very well received by management, investors and proxy advisors despite its creative and somewhat unusual design that ties awards to specific stock price goals. To further ensure the success of the engagement, Farient conducted a total pay analysis and developed a new peer group that takes into account the broader hospitality focus of the organization.