Insight: Our approach to rewards and compensation
Our approach to rewards and compensation: Sullivan Street Partners‘ operating model is centred around the dedicated employees and management of the companies brought into our portfolios. With growth at the heart of our transformation mission, we believe that providing appropriate rewards and compensation are an inextricable part of our commitment to the teams we work alongside.
Layton Tamberlin Managing Partner and Co-Founder: “Growth should be good for everyone in the business. We want to reward the employees who choose to stay on and trust in our stewardship. It is essential we give well-benchmarked salaries for all as well as meaningful potential rewards. Therefore, some roles are given bonuses each year whilst others receive long-term incentive plans.”
With the transformation of a business comes ensuring that employee retention rates are high. It is pertinent that companies are provided with the right tools to handle the transition seamlessly and feel valued in their new working environment. “We are passionate about incentivising our portfolio company employees. We want them to feel motivated about contributing to its long-term success upon acquisition. One of the ways we do this is by putting in place LTIP plans. These compensation plans allow companies to reward employees, both for their loyalty to the company and their performance during that period.”
LTIP plans typically involve granting employees a bonus accrued over several years, based on company performance, or growth equity that vests over a multi-year period. They are crafted in a way that aligns the interests of employees with its company’s shareholders. Typically, these plans are given as rewards to management or senior leadership members. They are aimed at driving employee engagement by giving the team an incentive scheme and targets over a forecast period, so that they can adapt to the transitioning of the company structure.