A global oilfield services (OFS) company, headquartered in Houston, recently merged with another major OFS company and went public. As part of this transition, the Board of Directors approved an equity and long-term incentive plan, which was handed to HR for implementation.
Challenge:
The merger and subsequent public listing created several significant challenges for the company:
Global Compliance: The company operates in multiple countries, each with its regulations, tax laws, and legal requirements for offering equity to employees.
Budget Constraints: With a large workforce spanning multiple regions, establishing an allocated budget for the equity plan that aligned with both the company's financial objectives and local compensation standards was a complex task.
Communication & Training: Executives and top management, the primary recipients of the equity plan, required clear communication and education to understand the program’s benefits and compliance requirements.
Solution:
The company’s Senior Vice President of HR reached out to NBBS to develop and implement a global long-term incentive program.
Our approach was threefold:
Allocated Budget & Compliance Review: The consultants worked with the company's finance and NBBS team to develop an allocated budget for the equity program, ensuring financial sustainability. They also conducted a thorough compliance review in each country where the company had operations, addressing legal, tax, and regulatory requirements to ensure the program was fully compliant across all regions.
Design & Documentation of the Equity Program: NBBS designed a tailored global equity program aimed at motivating and retaining top talent, specifically targeting executives and senior management. The program structure included detailed administrative guidelines, which provided clarity on equity issuance, vesting schedules, and performance metrics. Additionally, NB documented the entire process, providing a roadmap for internal teams to follow during implementation and beyond.
Communication & Training: To ensure a smooth rollout, NBBS created targeted communication materials to educate the employees—primarily executives—on how the program worked and its benefits. The firm also conducted training sessions for the HR and Global Compensation departments, equipping them with the knowledge to manage and administer the program internally.
Results:
Successful Implementation: The equity program was successfully rolled out, with compliance in all operating countries fully ensured.
Executive Engagement: Targeted communication and training efforts helped executives and top management fully understand and embrace the program, increasing their engagement and retention.
Efficient Management: The Global Compensation department, trained and equipped with detailed guidelines, is now able to manage the program efficiently without requiring ongoing external support.
This initiative strengthened the company’s long-term incentive framework, aligned leadership interests with shareholder value, and supported the company’s growth trajectory post-merger and public listing.