Companies often summarise their intended executive remuneration structure in the form of a reward mix profile which shows the percentage distribution of total remuneration.
At first glance, many reward mix profiles indicate that the executive’s incentive pay is worth more than their fixed pay. However, we have observed many situations in which this type of interpretation would be misleading.
In this white paper we outline a suggested framework for presenting and interpreting reward mix profiles in the context of pivotal performance scenarios.