Gain leaders’ trust to sharpen the

human capital agenda

Understand business imperatives,

connect people initiatives

Navigate across contexts to create

tangible impact

Learners

empowered

through bespoke

projects last year

Course

recommendation

score

Journeys covering

HR across roles

and career stages

Alumni

refer someone

for a course

HR

Professionals

empowered to

impact business

outcomes

Flagship certificate courses for HR

professionals

Bespoke HR capability journeys for

organizations

Registration

Learning Lab

Assignment

Comprehensive

Assessment

E-Learnings

LTI is defined as ‘Variable compensation earned over a period of more than 12 months’

Long Term Incentives

Share Based Cash Based

– Stock Options

– Stock Settled

SARs

– Restricted Stock

– Performance Shares

Full Value

SharesAppreciation

Based

– Cash Settled SARs /

Phantom Stock

OtherAppreciation

Based

– Phantom Units

– Long Term Performance

Cash

– Long Term Cash Plan

– Profit Share Plan

Indirect

The exact nature of Long Term Incentive pay depends on the employee behaviors that the plan is trying to

drive as well as the business outcomes it is trying to achieve

It is important that the plan objectives are clearly articulated and the plan design is aligned with the same.

This is critical to ensure success of the plan.

Ownership: Gives

employees a stake in the firm

and nurtures a ‘growth

partnership’ between

executives and shareholders

Sustained Performance:

Rewards long term

performance rather than short

term spikes. Encourages

employees to think of long

term health of the company.

Retention: Can help retain

critical employees through

retention hooks as it makes

the cost of separation high

Competitive Advantage:

Can attract top talent from the

industry thus enabling the

organization to build its

competitive advantage over

time

Motivation: Clear line of

sight of personal growth, tied

with company’s sustainable

growth, is a source of

motivation

Agency Theory: Addresses

problems associated with

agency theory of corporate

governance. Helps

shareholders (principals) build

trust on executives (agents)

Wealth Creation: Ensures

that performance translating

into financial success of the

firm lets employees create

and accumulate wealth in the

long-run

Communicates Commitment:

Compensation of executives

through LTI reflects their

commitment towards the

organization and drives a positive

growth mindset

Employer View

Employee View

• Business strategy

• Long term business plan

• Stage of the organization life-cycle

• Alignment to overall rewards strategy

• How much and how to pay

• How much to differentiate

• Gap from the desired pay positioning

• Possible issues in integration etc.

• Internal parity

• Specific information about competitors for talent

• Awareness of market best practices

• Application of learnings to own context

• Financial feasibility

• Account for drain on financial resources

• Assess shareholder comfort

• Compliance with Rules and regulations

• Governance imperatives

• Best practices

Choosing the right LTI

instrument that meets

the plan objectives

Who should participate in

the LTI plan

How do determine the

Target LTI value

Time period that should

lapse before employees

can exercise their options

Performance criteria

employees or the firm

should meet for award /

options to vest

Time available to

employees to exercise

their vested stock based

awards

12

Clear

Alignment with

Objectives

Simple to

understand

Stakeholder

Acceptability

Properly

communicated

& Implemented

Stable yet

Flexible

Compliant

Properly

Governed and

Administered

Fair &

Transparent

An Effective

LTI Plan

Online Learning Modules*

Learning journey spanning across two contact classes and a comprehensive online assessment

*Active for one year

Day 1 Day 2 Assessment

LTI Strategy

&

Instruments

Final

AssessmentLTI Design

Design

Simulation

Post Design

ConsiderationsGovernance

E-learning

Class Participation

Assignments

Final Assessment

• Final Assessment can only be taken

after attending all five modules

• Minimum 50% is required in the final

assessment

• At least 50% aggregate score is required to

complete the certification

Objectives

Outcomes

• Articulate how LTI drives business outcomes and

employee behaviors

• Position LTI as a competitive advantage for the

employer

• Differentiate between different LTI instruments and

understand implications of each

• Select stock-based or cash-based vehicles as per

their relevance to organizational context

LTI Strategy & Instruments

The ‘what’ and ‘why’ of LTI

• Integrate LTI into the total rewards strategy of an organization

• Assess the need of having LTI in an organization

• Understand what an effective LTI strategy should be

• Explore different share-based and cash-based LTI vehicles like

Stock Options, Restricted Stock, Performance Shares, Long

Term Cash and Phantom Stock

Objectives

Outcomes

• Define key plan design elements such as eligibility, quantum,

plan period and performance conditions

• Understand option pricing technique and determination of grants

• Gather conceptual understanding about expensing of share

based payments & impact on Dilution and Earnings per Share.

• Learn about key regulations governing LTI, expensing and tax

implications in India through an excel based activity

• Understand market prevalence of LTI instruments

LTI Design

Introduce design considerations

• Outline LTI plan features in line with objectives

• Build capability to deal with complexity in LTI design

• Compute potential benefits for the employee

• Compare benefit to employees with the cost to the

company for select LTI instruments

• Incorporate market information in LTI design and

implementation

Objectives

Outcomes

• Recognize key drivers and outcomes of an LTI plan

• Visualize the LTI design process through a simulation of different

business contexts.

• Draft LTI Plans in line with the business scenario and HR

context

• Apply various techniques related to LTI to see impact on related

aspects

Design Simulation

Technicalities of LTI Plan design

• Appreciate real time challenges associated with LTI

plan design

• Focus on what’s relevant with respect to LTI plan

design and solve for the key problem areas

• Understand the expensing nuances through a case

study

• Enhance LTI plans based on organizational context

Objectives

Outcomes

• Appreciate the approval process for different LTI plans

• Learn about stock based plan with no equity dilution

• Identify alternate approaches to determination of option grants

• Understand treatment of LTI in special cases such as New Hire,

M&A and modification of an existing scheme

• Learn about commonly followed retirement and termination

provisions• Learn alternative approaches to deciding select plan

features

• Appreciate and resolve special situations post plan

design

• Deal with LTI grants from previous employer in case

of a new hire

• Modify LTI plans based on critical external or internal

changes

Post Design Considerations

Special topics in LTI

Objectives

Outcomes

• Recognize risks associated with LTI

• Understand LTI plan governance and the role it plays in

implementation

• Learn about evolved Corporate Governance practices

• Emphasize need for transparency and stakeholder buy-in for LTI

strategy and plans

• Be aware of potential risks to long term employee

behaviors

• Ensure LTI plans are designed and implemented

within governance structures

• Enable smooth transition from design to

implementation of LTI plans

Governance

Managing risks associated with LTI

Kumar has nearly 20 years of Management and Human

Capital consulting experience. He has a strong record advising

Remuneration Committees on issues relating to Senior

Management Remuneration and Performance. Kumar has

implemented a number of performance and productivity

enhancement programs for multi-business corporations. His

clients include major global and Asia-based organizations

sectors such as Johnson & Johnson, Deutsche Post-DHL,

Royal Dutch Shell, Origin Energy, SingTel, Bank Mandiri, Bank

Danamon, S P Setia, CIMB, SMRT, Globe Telecom, Aditya

Birla Group, Keppel Group of Companies, Far East Hospitality,

Sun Life Financial, Halifax Bank of Scotland. Prior to joining

Aon Consulting, Kumar has worked as an Engagement

Director in the India and Australia offices of the Everest

Group, a niche operations strategy firm headquartered in

Dallas, USA. Additionally, he has worked with the Stern

Stewart & Co, Schoders Asset Management, and Hewitt

Associates. He has led many research studies on shareholder

value creation performance of companies in the South Asia

and South East Asia regions and has authored many articles

in leading business publications. Kumar holds a Masters

Degree in Accounting and Finance from the London School of

Economics and Political Science, UK, a Masters Degree in

Business Administration from the University of Delhi, India and

a Bachelor Degree in Engineering from Birla Institute of

Technology and Science, Pilani, India

Kumar Subramanian

Partner,

Executive

Compensation,

Aon, South East Asia

Kumar's Mantra

Details create the

big picture

Sanford I. Weill

Anirban leads Aon’s Rewards Consulting practice for its IT

Product and Engineering Design verticals. He is also

responsible for leading the Research and Insights group and

New Client Acquisition for the IT/ITES industry. In his time

with Aon, he has worked with several prominent organizations

in these sectors to help them rethink their approach to

managing rewards through insights into market best practices

and compensation trends.

Anirban specializes in the area of Broad Based Compensation

with expertise in domains like Rewards Strategy articulation,

Market Pricing, Pay Range Design, Budget modeling,

Organizational Structure and Design, Process and Policy

audits, Short term incentive design and Rewards

Communication solutions

Prior to joining Aon, Anirban was primarily engaged with the IT

and Professional Services sector with notable organizations

such as Dell, where he worked as the Global Lead for

Compensation for its Application and BPO Businesses,

Accenture, where he lead compensation for its Management

Consulting business and benefits for overall Accenture India

and IBM where he worked as a Compensation Partner for its

IT Infrastructure Support Businesses and Global Initiatives.

Anirban Gupta

Director

Rewards Consulting

(IT), India

Anirban's Mantra

Success is short-lived

without risk and

innovation

Self

Navneet Rattan is a Industry Leader with Aon’s Compensation

practice in South Asia. In this current role, he leads Aon’s

Compensation business for the General Industry verticals

which comprise the services, manufacturing, pharmaceuticals,

life sciences and FMCG sectors.

Navneet specializes in the area of Rewards Philosophy

Design, Compensation & Benefits Benchmarking,

Compensation Structuring/Audit & Design, Benefits Audit /

Diagnostic, Pay Design & Implementation, Compensation

Harmonization, Implementation & Transpositioning.

He has also led multiple DD/M&A projects from Compensation

& Benefits point of view and has been involved both audit, pre-

merger as post-merger work.

His key clients include: Bharti Group, Tata-Teleservices,

Vodafone, Idea, Indus Towers, Ericsson, Spencers, Lifestyle,

Shoppers Stop, Sony, Star, Viacom, Walmart, Marriott,

Starwood, Taj, Jubilant Foodworks, Yum Restaurants.

An Graduate in Commerce from Shaheed Bhagat Singh

College, University of Delhi, 2003, Navneet also holds a

Diploma in Computer Science from NIIT.

Navneet Rattan

Director

Rewards Consulting

(General Industries),

India

Navneet's Mantra

If I asked people what

they wanted, they would

have asked for a

faster horse.

Henry Ford

Pritish manages the Aon HR Learning Center (AHLC) portfolio.

In his role, he directly leads the business operations, sales and

go-to market strategy for AHLC. He also supports content

creation initiatives for various priority modules in HR and

manager capability. He enjoys facilitation and often leads

public programs for AHLC, apart from facilitator capability

building initiatives.

In his new role, Pritish also helps drive the commercial

strategy of the consulting business by focusing on new

business incubation. He also leads the Aon HR Knowledge

Center, that drives the sales excellence and knowledge

management agenda of the organization.

Pritish has actively contributed to Aon’s flagship research: Top

Companies for Leaders and Best Employers. He has

published articles such as Engaged Leaders Drive

Engagement and Best Practices in Global Mobility. In his

earlier role, he was a part of a regional team which designed

the Best Employers 2.0 framework.

Pritish Gandhi

Leader,

Aon HR Learning

Center

Pritish’s Mantra

We shape our buildings;

thereafter they shape us

Winston Churchill

Connect with us

aonahlc@aon.com

011 43145500 Course Fee (inclusive of taxes)

INR 65,000Participation will be confirmed post payment

Learning Center

Classroom sessions

16 hours

Participant

Handbook

Pre-reads

10 hours

Certification

Certified LTI ExpertTerms & Conditions

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Aon AHLC Inquiry Mailbox

aonahlc@aon.com

011 43145500

Renny Koshy

renny.koshy@aon.com

+91 971 119 2301