Alliance & ventures

But a step change in growth profile is often needed. Buying growth is one choice. The M&A path is well trodden.

Company growth is needed to replace sales and profit attrition. Incremental growth is ever present from sales and marketing, product and process innovation and R&D.

Building future growth is the other choice. That entails bold thinking about the future, and complex entry, manage and exit choices. So, the opportunity response is sometimes hesitant, or patchy, or both.

This process involves:

  1. Define the Alliance or Venture logic.
  2. Assessing available entry types.
  3. Coordinating staffing, capital and resource.
  4. Flexibility on exit type and timing.

Some companies are expert at licensing, JVs and minority interest networks. Others have strong Corporate Venture Unit (CVU) credentials (some even managing third party capital).

Home grown start-up ventures offer staggering growth potential; but culture and worries about cannibalisation make implementation difficult. A self-stand unit, with separate mandate, staffing, reward and reporting is often needed.

Classic capital budgeting has a limited role here. Few CAPX models reflect the concept of the DCF Trap. That aside; to use group WACC to decide “go/no go” is unsound (but often used to kill threatening ideas). A story for another day.

Reward and incentives also need fresh eyes. Parent Co. STI and LTI most likely will not suit. Growth pay mechanics like gain share and Carried Interest might be needed. Defining who is in, why, and for how much on success all need much care.

As the world resets, more growth through Alliances and Ventures will be seen. This will reflect more entrepreneurial views on growth delivery, ever more technology, the Transition to Net Zero and the increasing pace of changed customer demands.

Delivering core profit is essential. But tomorrow’s profits derive from investments made today. That means M&A, yes. But it also means Alliances and Ventures.

Robert Head

Lead Consultant

Robert works with organisations of all types as a reward consultant or interim reward professional providing reward solutions, interim management and consultancy.

Robert is experienced in working across multiple sectors (including public listed, private equity, commercial, financial, non-profit, and charity).

Robert has deep subject matter reward experience in corporate governance, executive reward, remuneration committees, reward strategy, reward policy, annual bonus, long-term incentives, transformation and change, corporate actions, mergers and acquisitions, and restructuring.

Robert is experienced in stakeholder management working closely with Chairs and executive directors including CEOs and CFOs, non-executive director members of remuneration committees, members of executive committees including business unit CEOs/Presidents, senior HR business partners and other line executives, senior management in other organisations, outside specialists and advisers, and investors.

Robert Head Corpgro

Jane Allen

Lead Consultant

Jane has over 30 years of Reward experience within listed multinational organisations and consultancy environments.

Her expertise covers Total Reward (strategy and programmes), benefits & wellness, pensions, executive compensation, Remuneration Committee support, annual and long-term incentives, VCPs (value creation plans), M&As and restructuring.

Jane has successfully established reward teams and best practices for all key reward processes, leading on complex local and international issues across UK and US listed, family owned, and PE backed ownership structures.

She has a keen interest in ESG and how this can be reflected within Executive Pay to align with the long-term sustainability of businesses. 

Jane is a Fellow of the Pensions Management Institute and a Chartered Insurer. She is an independent Trustee for The Economist Pension Plan.

Damian Carnelll

founder director

CORPGRO is a reward consultancy specialising in executive incentives particularly those connected with growth; and ESG.

Damian has extensive experience advising leading companies on all aspects of executive compensation and equity plans. He was previously with Willis Towers Watson, Aon, and Ernst and Young. 

Damian’s extensive experience in executive compensation and equity plans means he is fully familiar with Corporate Governance norms, institutional shareholder views and proxy voting both advisory and binding.

Damian Carnell Corpgro