Tiger Airways: Incentivising Talent Through Compensation

It was November 2012 and Koay P.Y., CEO of Singapore-based low-cost carrier Tigerair, was putting together a compensation plan to be submitted to the Board’s Remuneration Committee. He had been in discussions with Ong Chee Mei, Chief Human Resources Officer, on key considerations of designing a compensation scheme that supported the company’s business and HR objectives.

Leading up to Koay’s appointment in August 2012, Tigerair had experienced a difficult time since it was listed on the Singapore Exchange in January 2010. A series of events had negatively impacted the company’s brand reputation and financial performance. Moreover, several senior executives had left, or were about to leave, the group after its initial public offering in 2010, and these positions had yet to be filled. The company thus needed to hire the right people who could help turn the company around and build a stronger business foundation.

From this case, students will learn how compensation is a fundamental part of corporate strategy. Students will learn the different components of executive compensation, and how these components work together to produce the incentives that motivate employee behaviour towards fulfilling company strategy; and then be able to articulate a plan for putting together a suitable executive compensation scheme that supports corporate strategic objectives and drives company performance.

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