A 10-slide presentation of an M&A employee retention bonus program after an acquisition that cover retention amounts, payout terms, and retention period.

Agenda

Guidelines for Determining Retention Bonuses
Amounts
Administration
Retention
Payout Terms and Conditions
Summary
Talent Loss
Engagement to Departure Process
Major Events (Like an Acquisition)
Events That Trigger Disengagement
Four Fundamental Human Needs
7 Hidden Reasons Employees Leave

Guidelines for Determining Retention Bonuses

The following factors must be considered when assigning awards (retention bonuses):

  • Criticality of the skills or knowledge provided by the Employee as it relates to achieving closing or integration;
  • Increased risk of the employee leaving Acquirer as a result of the merger;
  • Employee’s perceived level of threat to ongoing employment before or after closing;
  • Criticality of the employee to the ongoing business; and
  • Internal equity between similarly situated participants.

Administration

Authority and Process:

  • Each Management Team member will receive a detailed list of employees, title, performance history, current base pay, and other relevant compensation data. Management Team members must supply the following to request participation:

    • Proposed Retention Period
    • Award percentage (based on established guidelines);
    • Timing of payout(s)
    • Brief justification of the award
       
  • All Retention recommendations will be reviewed by Organizational Development to ensure consistent application of the guidelines and to monitor overall program expense.
  • The final list of recommendations will be submitted to the Executive Committee for review and approval. Exceptions to the guidelines will be flagged.

Funding:

  • All awards and benefits are subject to the aggregate available funds of the Company.

Retention Period

  • The Retention Period from here forward refers to the pre-defined period of time that the Employee is being asked to remain in order to qualify for a payout under this Program. The Retention Period will be based on business need and time required to substantially complete the integration.
  • A Retention Period may be extended by Acquirer with sufficient notice to the Employee. Any extension of the Retention Period beyond the initially approved term requires written documentation and will be subject to Executive Committee approval...

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