Attracting and Retaining Top Executive Talent at NGX-Listed Companies
Nigeria's listed companies face intense competition for senior executives. Equity incentives are the most effective tool for winning and keeping C-suite and senior management talent. Here is how to use them.
The competition for senior executive talent at Nigerian listed companies has never been more intense. The pool of genuinely qualified, experienced C-suite executives — CEOs, CFOs, Chief Risk Officers, Group Managing Directors — is finite. Multinationals, regional African corporates, international finance institutions, and an increasingly active private equity market all compete for the same individuals. For NGX-listed companies, equity incentives are the most powerful differentiator in this competition.
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Why Salary Alone Does Not Retain Nigeria's Best Executives
At the executive level, candidates do not make decisions on salary alone. They compare total compensation packages: salary, pension, healthcare, and — critically — equity. An executive offered a salary of ₦50m per year at Company A, versus a salary of ₦45m plus meaningful unvested shares at Company B, will often choose Company B. The unvested shares are not just financial upside — they signal that the board trusts the executive with real ownership, and they create a compelling financial reason to stay through the vesting period.
The Brain Drain Factor
Nigeria's professional elite face a genuine optionality problem: international opportunities in London, New York, Dubai, and across the African continent are accessible and often well-compensated in hard currency. Retaining a talented CFO or Chief Digital Officer against an international offer requires offering something that the international opportunity cannot easily replicate — a meaningful stake in a Nigerian listed company, with the upside of the Nigerian growth story.
Executive Equity Structures That Work
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- Performance Share Plans (PSPs): conditional share awards that vest over 3–5 years subject to company performance conditions — align executives with shareholder returns
- Restricted Stock Units (RSUs): time-vested share awards for retention without performance conditions — simpler to communicate and administer
- Long-Term Incentive Plans (LTIPs): broader plans that combine PSPs, RSUs, and other instruments in a single framework for the senior management tier
- Co-investment plans: executives invest their own capital alongside the company's equity award — reinforces alignment and personal conviction
Board Governance and Executive Equity
Executive equity plans for listed companies require careful governance. The Remuneration Committee of the board must approve executive incentive plans. Disclosure in the annual report is mandatory. The SEC Nigeria and NGX have specific requirements for listed company executive incentive schemes. Institutional shareholders increasingly scrutinise executive equity awards at AGMs. Working with a professional ESIS administrator from the outset ensures that the governance and disclosure requirements are managed correctly.
Shares Saver designs and administers executive equity plans for NGX-listed companies — from scheme design to CSCS registration to board reporting.
Design an Executive Equity PlanImportant disclaimer. This article is for general information and educational purposes only. It does not constitute financial advice, investment advice, or any recommendation to buy, sell, or hold any security. The value of investments can fall as well as rise. You should seek independent regulated financial advice before making any investment decision. Shares Saver does not provide financial advice.
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