long-term incentives Tag

By Bertha Masuda and Susan Schroeder One of the most important compensation-related activities a company will undertake is creating effective communication plans that explain incentive pay structures. Especially important is helping executives – those most vital to the ongoing success of the company – understand their...

 By Jeff McCutcheon  While perfectly aligned with investors in the short term, “TSR programs may diminish accountability for strategy by rewarding for events unrelated to changes in long-term franchise value.” Paying for performance is assumed to be the objective of most pay plans. A quick read of a handful of proxy statements will likely find the phrase prominently used. The Dodd-Frank act...

By Bonnie Schindler Private, for-profit companies in the United States rely heavily on cash incentives to motivate and retain executives and employees, according to the recently released 2013 Vivient Consulting and WorldatWork “Incentive Pay Practices Survey: Privately Held Companies”survey of private-company incentive-compensation plans. This survey was conducted...

By Don G. McDermott Public companies have long used stock options and other equity-based incentives to reward their executives. As a result, stock options have become an extremely lucrative portion of the total compensation for executives of publicly traded companies. Considering the enormous amount of wealth...