The 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...
I am declaring February “Stock Option Month” at the Café (at least in relation to my posts). For more than 20 years I have been directly involved in the ebb and flow of employee stock options. When they are great, they are the best. When they are not great, they can be truly destructive. I...
We 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...
Pay 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...
Someone recently asked me to explain how I knew what direction to take plan design conversations. She had participated in a several plan design discussions and it seemed like there was not much rhyme or reason to the process. After giving it some thought, I told her it was a bit like navigating a river...
I was reading a Facebook message a parent posted about their kid’s physics homework and it resonated as a reminder for the compensation world. The question was how do you explain the differences between speed, velocity and acceleration. A few years ago, I wrote an article about Newton’s Three Laws of Compensation Motion and I...
Question: (org. on Quora) Answer (by Dan Walter) Whether you have an HR professional or not Human Resources is likely the single greatest contributor to your organizations success. First. Unless your company is really large, HR controls more of your revenue than any other department. At small and mid-sized company as much as 65-75% of revenue...
Professor Dylan Selterman (@SelterMosby) is a psychology lecturer at the University of Maryland. Earlier this summer he gave his students an extra credit question that made them select between direct self-interest or indirect self-interest. The question is below: “Here you have the opportunity to earn some extra credit on your final paper grade. Select whether...
Question (Orig. on Quora): How have you seen Stock Options or Performance Rights grants change for employees from Pre-IPO to Post-IPO? What are the triggers and how have the amounts differed? Building out our long term comp strategy. Thanks! Answer (by Dan Walter): First, it must be clarified that this answer refers to “pre-IPO” as...
Question: (org. on Quora) How do you sell Facebook stocks (RSUs) that you have? Answer (by Dan Walter) This answer will be generally accurate for any RSUs that can be settled in company stock. Your company may have additional rules or restrictions. 1. The RSUs must vest. When they vest they essentially turn into stock....
