Managing Senior Executive Contracts: A Tool for Organisational Change
27 August 2010
CEOs often struggle most with making changes and addressing performance issues for their own executive teams. Consequently situations are often allowed to escalate, creating problems when the issues are finally addressed. However, economic pressures are now combining with the current climate of perceived failures in executive performance and reward governance to create a greater requirement for organisations to change executive accountabilities and reward structures and, in many cases, effect executive level terminations and redundancies.
Creating, managing and changing all aspects of executive contracts is clearly becoming an increasingly important issue in both driving organisational change and in building back up the levels of trust amongst a wide range of stakeholders. Yet this clearly presents a number of major challenges to organisations striving to effect change.
This breakfast briefing focused on a highly practical treatment of these challenges. It was jointly run by Tom Gosling (PwC) and Fiona Bolton (Eversheds), combining a consideration of both the reward and legal elements of effectively managing the following aspects of senior executive contracts:
- The nature and character of the “New Contract” and re-establishing fairness and trust;
- Designing - and redesigning - the Executive package;
- Arriving at the decision to terminate and managing the termination process;
- Managing internal and external communications;
- Clarifying key roles in the process including Non-Execs, the CEO and HR.