The Lorax Explains Equity Compensation

untitledAt the narrow end of an IPO spike

where the stock market slows

and the stock options lose value and the investors say no

and RSU vesting periods continue to grow…

is the street of the equity Lorax.

And deep in this narrow place, some entrepreneurs say,

if you look deep enough you can still see today,

where the bubble once stood

Just as long as it could

Before somebody lifted the funding away.

 

What was the Equity Lorax? Continue reading

How to Determine Equity Grant Sizes (it’s probably not what you think)

6a0134836082f8970c01bb08c1f798970d-200wiDetermining grant sizes or values is Part 4 and the next challenge in my ongoing series, “Stock Options on the Precipice”. At some point, you will arrive at a place where you will need to determine award sizes. There have been times where this was less difficult than it is right now. And, there will never be a time where this is as formulaic and consistent as base pay amounts.

The first question is whether grants should be based on a percentage of the company, a given number of shares or options or a dollar value converted into a grant amount. Much of this depends on Continue reading

11 Reasons Your Equity Compensation Survey Data is Wrong

6a0134836082f8970c01b7c8191c03970b-200wiPart 3 of my ongoing “Stock Options on the Precipice” series.

How much equity should I give (or get)?

It’s probably the most common question I get asked. The answer, as I am sure you know, is “It depends”. And, with equity compensation the final answer is even squishier than other types of compensation. Data seems to be all over the place. Trends appear to vary based on who is providing them. It often feels like survey data is pulling companies in specific directions, when it should be reflecting directions that have already been taken. What in the heck is going on?

You haven’t lost your mind. Equity compensation really is Continue reading

Equity Compensation Triage Assessment (Stock Options on Precipice Part 2)

6a0134836082f8970c01b7c8140d49970b-200wiThe first article in this “Stock Options on the Precipice” series covered some of the main issues that are currently impacting employee stock options (check it out here). This article will discuss some of the paths you might take if you are having stock option concerns. For many executives, human resources and compensation professionals, this may be the first time to experience the trials and tribulations of stock options. For others, the questions below and the assessment process may be a new way of addressing this issue.

Luckily, Continue reading

Sam Reeve to Cover 4 topics at BLR Thrive 2016!

Performensation is pleased to announce that Sam Reeve, Performensation’s Executive Vice President of Consulting Services, will be presenting on four topics at the BLR Thrive 2016 annual conference, May 12-13, 2016 in Las Vegas!

Sam is a well-regarded compensation leader with broad and deep experience across many industries and virtually every size of company. Come to Las Vegas and spend a little one on one time learning more from Sam.

Sam’s presentations will cover:

The Cutting Edge of Compensation: Critical Trends of 2016 and Beyond

Selling the C-Suite on Your Compensation Plan: Secrets to Securing Executive Buy-In

Total Rewards Tactics for Motivating the Multigenerational Workforce

Sales Compensation Strategies for Retaining Selling Stars

 

HELP! Was I Just Arrested or Incentivized?

Jan 13 6a0134836082f8970c01bb08ab64e4970d-200wiWe all wish we were better at communicating. We create presentations (decks) and plan summaries (SPDs). We carefully choose our words and have our colleagues review things before sending them. Our efforts need to be understood by people with wide ranges of experiences, education and levels of interest. But what if our best efforts were making things worse?

Fill in the blank from the selections below:

Today I was _______ for my collaboration in a scheme.

  1. Incentivized
  2. Arrested
  3. Confused

The correct answer, in our industry, is Continue reading

Incentives Without Teeth

6a0134836082f8970c01bb08a76bbb970d-200wiPay for performance continues to grow as a solution for motivating people in a world of flat compensation. The title of this post probably had you thinking about incentive plans that required real goals to be met before payment was earned. Maybe you thought about one of your programs where people got paid even when performance wasn’t great. While these are common themes in motivational pay, this post is about an entirely different kind of teeth.

As a Continue reading

You are Not Lebron James (or Facebook, or Google)

6a0134836082f8970c01bb088b1ce3970d-800wiLebron James has just become the youngest person in NBA history to score 25,000 points in his career. He is not yet 31 years old. You are not Lebron James. It is an obvious fact. You are not 6’8”. You are not 250 lbs. of muscle. You cannot dribble a basketball while running faster than your neighbor being chased by a bear. You cannot leap 3 and half feet into air and gracefully land with a smile. You haven’t spent your entire life optimizing your skills and talents to be the best basketball player in the world. You know this.

Yes, you may be about 31 years old. Maybe you weigh 250 lbs. You might even be 6’8”. Even if these things were true, it would be a mistake to directly compare yourself to Lebron. Lebron is fun to watch, but at no point would you fool yourself into believing you can do what he does. Even those players who contend with him for the title of “best basketball player” don’t try to do things the way Lebron does.

Your company is also not Facebook or Google. Your product is Continue reading

Delicious Amber Transparency

6a0134836082f8970c01b7c7e30888970b-200wiWe talk a lot about pay transparency. It seems like half the time half of compensation professionals argue for more and half argue for less. New Belgium Brewing is a company who does a great job at being open. In fact, they are so good that they are an example used by the media, other companies and even the U.S. Government.  More importantly, they seem like great company.

Kim Jordan, the cofounder of New Belgium, has made it a priority to make sure the company is always paying a living wage. Her passion for making sure everyone at New Belgium has the opportunity to thrive is an essential component of Continue reading

IN MEMORIUM: FAREWELL ANNUAL RAISE

untitledAn article was published last week with data from Aon Hewitt and Towers Watson that showed the annual pay raise is essentially dead (and in Towers Watson’s case, bonus pools will also be underfunded). The data apparently shows that we will deliver base pay as a flat amount going forward. Increases in pay will come from incentive plans, if they are funded. Let’s cast a fond farewell to a method of pay that has existed for as long as people have been paid.

Thankfully, we Continue reading