Stock Appreciation Rights (SARs) are a commonly misunderstood component of the equity compensation mix. This is probably because each of three distinct variations has been promoted as “the answer” at different times over the past two or three decades. To participants, SARs offer much of the same compensatory rewards and risks as stock options. To companies, these instruments offer both accounting and tax considerations that generally make them a second choice to stock options. Many Continue reading
Riding the Growth Curve
Several years ago, I worked for a company that was beginning to experience some significant growing pains brought on by its expansion into the global marketplace. The young company I had joined had grown rapidly in the U.S. and was now looking for a stronger presence internationally. Opportunities to open locations in Europe, Asia and Latin America had triggered a hiring phase unlike any the company had previously experienced and in the eagerness to expand; we overlooked the fact that we were rapidly outgrowing our own infrastructure.
It didn’t take long before the problems became apparent. There was no process in place Continue reading