Executive Compensation

Executive compensation forms an important corporate governance instrument. During a life span of a company, the interests of shareholders which consist of maximizing shareholder value – may be in discrepancy with the interests of the board members. In such circumstances, alignment and reconciliation of their interests should be the focus of vertical corporate governance.

Although such problems are specific to systems with distributed (share) ownership structure – which are to a lesser extent represented in the Croatian corporate setting – the best corporate governance practices and leading companies implement appropriate corporate governance instruments based on a sound executive compensation structure.

In this respect, the most successful companies often implement a board member’s reward system based on compensation consisting of share vesting in the company or affiliated companies, and other measures, with a vi to attracting new successful individuals. This is especially important for businesses that are bound and dependent on human capital.

Considering the important role that the structuring of carries in the context of incentivizing the incumbents and attracting new management talent, labour, corporate and tax law lawyers in BDV are working together to provide clients with comprehensive advice and support regarding compensation, shareholding participation and profit-sharing. Our lawyers provide special advices on a stand-alone basis or within strategic transactions such as M&A, as well as corporate restructuring.