New Delhi, Nov. 6 -- As private equity (PE) firms pursue larger control deals and consolidate through platforms, they are increasingly turning to structured management incentive programmes (MIPs) for portfolio company executives to align their interests with the investors' exit objectives.

These incentives, paid over and above the pay package, can be seen as profit sharing and help PE funds attract and retain top talent to lead portfolio companies through to exit, industry executives said.

Such exit-linked management incentive plans, or upside payment agreements that tie management payouts to the internal rate of return (IRR) or multiple on invested capital (MoIC) realized at exit, are becoming increasingly common as financial sponsors ...