Senior executives (‘executives’) are employed to help create shareholder value. When a company decides to employ one executive rather than another, it is taking a view on which one will better achieve that aim: i.e. which one will create greater value for the organisation. Once that decision has been made, a deal must be struck and documented. After it has been struck, the deal continues to evolve. This book is a guide for those involved in that process.

The best, most effective deals, which means those most likely to enhance shareholder value, are those which are ‘fair’ to both parties. These are deals where, with appropriate checks and balances, the executive's ‘price’ is the market price for someone with that skill set, ability and potential for creating shareholder value.

Chapter 1 sets out a framework for constructing executive rewards and how this can be used to compose a ‘term sheet’ for a senior hire from which a contract can be constructed

Chapter 2 discusses the practicalities of converting a term sheet into a legally enforceable agreement. It ends with a set of questions any reviewer of a service contract should ask as they review it.

Chapter 3 explores the most effective ways to reach robust and fair values for the various elements of the remuneration package.

Chapter 4 describes the various forms of executive reward commonly found in UK listed companies and discusses the process of determining the package.