Many employers provide post-employment benefits such as pensions, severance benefits, long service rewards, or medical benefits as a tool to attract, retain, and care for the well-being of loyal employees. Many countries further require employers by law to provide a certain minimum level of long service rewards for employees. Often, the amount of benefits is uncertain until the time of termination or retirement as they are linked to employees' salary or inflation during the employment years. As a result, many employers are unprepared for the financial burden and risks associated with their promises, which often lead to unpleasant surprises.
Employee share ownership has become an important component of today's corporate incentive strategies. Until recently, few companies with share-based compensation schemes such as employee share options, phantom stocks, and share appreciation rights have taken their true costs into consideration.
We provide comprehensive actuarial consulting and valuation services for post-employment employee benefits, stock options, and performance-based compensation—whether you need to comply with US, international, or local accounting standards. We apply our leading risk analysis techniques to traditional actuarial valuations, giving our clients the power to manage their risks properly and with confidence.