In times of financial distress, executives and other key employees work under tremendous pressure to restructure their business to preserve value for financial stakeholders, jobs for employees, and business continuity for customers and suppliers. In the absence of focused actions, executives could work for 25 cents on the dollar.  Severely underpaid executives may resign or adjust their work tempo to reflect their compensation.  The best practice is to offer pay opportunities incentivizing management to drive the restructuring.  We understand your challenges and can assist through every phase of the process from before, during to after your restructure. 


If your company is facing financial distress we are here to help you to:


  • Develop programs that remain fair and defensible  to stakeholders
  • Competitively compensate employees for their work
  • Incentivize leadership to maximize stakeholder value  and complete the recapitalization in a timely manner
  • Retain key employees vital to the restructuring process

By taking a tailored approach to your incentive and retention plans we can accommodate for your company’s unique restructuring needs. Some example of how include:


  • Key Employee Incentive Plans ("KEIP") that can help to navigate your company through restructuring by aligning the interests of key employees with stakeholders.
  • Key Employee Retention Plans ("KERP") that motivate employees to stay with your company and reward them for their extra work to complete the restructuring.
  • Management Incentive Plans ("MIP") that reintroduces equity compensation (such as stock options and restricted share units) to your executive pay packages after the recapitalization.

Mercer’s consultants specialize in compensation challenges caused by various types of financial distress, from out-of-court recapitalization to bankruptcy reorganization or a distressed sale. We stand behind our advice and will present to board, creditors and bankruptcy courts.  

Speak with a consultant.

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