Design of Total Remuneration Strategy for privately held Investment Bank incorporating Private Equity and Principal Finance Operating in the MENA Region

Brief:

MM & K was asked to advise the Board on a group wide remuneration strategy consistent with US and European style comp structures. A key stipulation was for a strategy to encourage executives to identify with the whole group and not just to promote their own business line or geographic area. The business has offices in Riyadh, Tunis, Dubai and Geneva.

Solution:

using existing market knowledge, provide advice on investment bank/private equity compensation structures
understand the business, recommend an incentive strategy to support it and propose plan designs to implement the strategy of annual bonus, stock options, carried interest and co-investment plans
prepare detailed plan specifications for each agreed incentive plan structure
using MM & K’s own market based data, provide advice on participation levels including relative allocation of carry points to PE team members (the entity runs a number of PE Funds) and on the treatment of good leavers/new joiners
prepare financial models to determine potential quantum of payout in a number of performance scenarios
work with local and international lawyers to advise on best legal structure for annual bonus, stock option, carried interest and co-invest plans and prepare rules and other ancillary documentation for approval by the Group Compensation Committee.

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