Annual Incentive Plans
Annual incentive plans play a strategic role in compensation practices. The foundation of our annual incentive plan designs are strictly performance based.
These plans have the flexibility to use various types of awards with the primary awards typically paid in cash; however, equity or a combination of cash and equity may be used. MCCA provides participants with projected benefits, detailing the award breakdown, if any. We also provide expense and revenue forecasting to the bank by illustrating various annual incentive plan scenarios.
MCCA works with institutions to help them understand how to effectively integrate these plans into their annual strategic planning meetings. Our suggestions often include a number of objectives within each tier of the plan, in addition to the appropriate objectives for the current market environment, or long-term goals of the bank.