Nadia Haddad· Director of Rewards, MEA, Qasr Holdings
Posted in Executive Compensation ·
I joined a mutual insurer in the Netherlands eighteen months ago after years in listed companies, and designing a long-term incentive without shares has been more interesting than I expected.
What we have settled on is a three-year cash plan with four measures: solvency ratio kept within a target range (pays nothing if it falls below, and nothing extra for running above), combined ratio against a peer set of seven, member retention, and a cost per policy target. Payment is deferred a further two years and subject to reduction.
The hardest design choice was whether to reward growth at all. We decided not to. I would like to hear how other mutuals and cooperatives think about that.
0 reactions · 3 replies · 6 views
Priya RaghunathanGRS, CSI
Head of People Analytics, Calibre Software
We came to the same view on growth after a bad experience. A growth measure in the 2010s plan led to pricing that took four years to correct. The range for solvency is a good idea. Ours only had a floor, and executives were effectively rewarded for holding more member capital than the business needed.
Dana WhitfieldCRP, GRS
Director, Global Compensation, Meridian Health Systems
A cooperative bank view: we do reward growth, but only in members who hold three or more products, as a measure of whether the relationship is deepening. Pure volume growth is excluded. It carries 15% of the plan.
James OkaforCRP, CEP
VP, Total Rewards, Halcyon Financial Group
Have you considered having no long-term plan? Two mutuals I know moved to fixed pay with a modest annual bonus and say recruitment has not suffered. For candidates coming from listed companies the absence of equity is the issue, and a cash plan with five years to payment does not really replace it.
