The Dispute Service | Executive Variable Pay

Their challenge

The Dispute Service (TDS) was on a journey to diversify its portfolio and adopt a more commercial operating focus while staying true to its not-for-profit purpose. The Remuneration Committee were keen to ensure Executive remuneration could attract future talent, encourage value creation and remain affordable, sustainable and prudent. Any changes to the Executive remuneration composition therefore needed a clear purpose, stakeholder confidence, acknowledge employee sensitivity and ensure alignment with the organisation’s wider reward principles. 

Our solution

Innecto interviewed Executive Team and Board stakeholders to understand current performance, reward arrangements and future aspirations before defining reward principles, analysing executive variable pay practice across not-for-profit and commercial peers, and testing variable pay options for cultural fit and unintended consequences. The preferred variable pay approach was shaped using internal KPIs, market comparability and affordability scenarios, then documented through scheme rules, operating plans and participant letters

The outcome

• A fully tested and costed variable pay scheme: aligned with strategic direction to drive long-term performance in the Executive Team

• Succesful implementation - the plan is working well and sustaining Remuneration Committee confidence. 

• Commercial focus strengthened: incentives support performance without compromising TDS’s ethos. 

• Future-ready reward framework: remuneration philosophy now guides Executive Team decisions