Willis Towers Watson's "2021 incentive plans will look a bit different" identifies several sound design and structure considerations for 2021 annual and long-term incentive plans that take into account a higher risk and more uncertain business climate. Suggestions include reducing incentive risk and leverage (i.e., less upside and downside), establishing lower goals, establishing measures for strategic objectives (e.g., acquisition, exiting a business), including relative performance measures (i.e., performance relative to peers), and more.
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