EPI-USE Analytics provides the incentive remuneration modeling capability for EPI-USE with special emphasis on Long Term Incentive (LTI) and Short Term Incentive (STI) Schemes.
Corporate Governance Principles advocate companies to adopt remuneration policies and practices that create value for the company over the long term. As such the Company Board should promote a culture that supports enterprise and innovation with appropriate short-term and long-term performance related awards that are fair and achievable (King III Chapter 2.149).
We deliver modelling products and incentive valuation services for both LTI and STI Schemes. The main focus of the value proposition comprise the critical areas of:
- Incentive Scheme and –Instrument management;
- Incentive Scheme Instrument Valuations;
- Accounting (IFRS) and Statutory reporting (required for Directors' Remuneration);
- Participant reporting;
- Human Resource reporting; and
- Scenario building and analysis.
These solutions are provided as outsourced services or as standalone products.
Our Modelling and Development experts have financial, business modelling and development skills, experience and implement proven methodologies as part of the LTI and STI offerings.
Long Term Incentives
- Instrument Valuations for various cash settled and equity settled share schemes such as Share Options, Share Appreciation Rights (SAR), Forfeitable/Restricted Shares (FS) and Deferred Bonus Plans (DBP);
- Instrument Valuations are performed for both grant and annual Statutory Reporting purposes; and
- Valuation Methodologies include Black Scholes, Binomial Tree, Monte-Carlo Simulations and Projected Unit Cash Flow method.
Short Term Incentives
- Calculation of the quantum of bonus payments performed on a monthly, quarterly or annual basis;
- Calculations are performed for both Bonus Payment and Statutory Reporting purposes;
- Calculation of Performance bonuses applied by means of various methodologies e.g. Personal Performance (KPI) and/or Company Performance (EVA™) for various employee levels.
Platforms and solutions
- Microsoft ® Excel
- Windows Application (C# .NET)
- Web Application (C# .NET)
- We have the ability to extract necessary data from most data Sources (e.g. SAP ECM)