This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Success Of Multi-Billion Dollar Acquisitions Rests Heavily On Keeping Key Talent For The Long-Term, Mercer Survey Finds

For organizations engaged in mergers and acquisitions, retaining critical talent is top of mind since it often directly impacts the overall success of the deal. According to Mercer’s Survey of M&A Retention and Transaction Programs, when companies adopt a retention program, executives critical to long-term success are eligible for retention incentives in 70% of the programs, compared to employees for the short-term success of the integration who are eligible in just 53% of the programs.

Moreover, the use of retention incentives is even higher for organizations conducting cross-border transactions – 80% for executives critical to long-term success and 60% for employees for the short-term success of the integration.

Mercer’s survey examined the extent to which two main tools for retaining critical talent -- retention incentives and transaction bonuses – are used. According to the findings, retention incentives, which are designed to keep employees through or after deal closing, are widely accepted means of talent retention while transaction bonuses, which reward employees for the work undertaken during a transaction, are used less frequently.

“Organizations must first review their acquisition strategy to determine if a retention incentive plan is needed to protect against critical employee flight risk. If so, key design considerations include which employees should participate, how much they should be awarded, payout timing and structure, performance conditions, and finally, overall plan cost,” said Chuck Moritt, Senior Partner in Mercer’s M&A consulting business.

Mercer’s Survey of M&A Retention and Transaction Programs analyzed information from 42 organizations around the world actively engaged in mergers and acquisitions to better understand the tools used to retain critical talent. The survey reflects detailed information on the retention and transaction programs implemented in over 70 deals completed by these organizations in the past three years.

Retention Programs

Retention programs focus on retaining executive and senior management critical to the integration process. According to survey findings, almost two-thirds (62%) of deals completed by participating organizations over the past three years used retention programs. Typically organizations determine whether a retention program is necessary early in the due diligence process, then determine eligibility as the close of the deal approaches.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs