View Orig. question on Quora For example, could management accelerate vesting of ISOs based on performance/reviews (without negative consequences, such as the options becoming non-qualified). This could be combined with an extremely long default vesting term, to allow for bonus/performance comp without requiring separate option grants (which would have higher strike prices). Dan Walter’s Answer...
On January 16, 2014 it was announced that Yahoo ended the employment of their COO and second in command, Henrique De Castro. Mr. De Castro was hired away from Google only 14 months earlier. His expertise in advertising was intended to be a major component in getting Yahoo back into a leadership position in this...
RSUs usually have an early termination date if an Employee leaves. Assuming an employee wants to leave but is unsure if their company will IPO before this early termination, will this employee lose all RSUs if the company does not IPO within that time? Or are there other events that can help this employee maintain...
As someone who spends a lot of time designing and honing long-term incentive programs, I thought I’d skip 2014 and make some predictions about time frames that compensation people really have to worry about. 3 Years from now, 2017: The durations used to measure past and future performance for executive compensation. The most common service-based...
There are a wide array of methods that may link compensation to company performance. Some of these define “performance” broadly others define performance via more granular metrics. Broad linkages include Employee Stock Ownership Plans (check out http://www.nceo.org, standard time or service vested stock options, restricted stock and similar forms of equity compensation and Short and...
The importance of stock options in start-up recruiting is largely dependent on your industry, location and the position for which you are hiring. In some areas of the world stock options (or a similar type of equity compensation) are considered an essential component for every mid and high level hire. Because “everyone” gives them, “everyone...
It’s the holiday season and that means pie. There is apple pie, pumpkin pie and even mincemeat pie. There are two truths about pie. First, no one wants to finish the pie so the final piece keeps getting smaller by half and half again until only a forkful is left. Second, when the pie is...
(Orig post at www.compensationcafe.com) We discuss communication a lot here at the Compensation Café. We know that if people do not understand their compensation they are unlikely to be attracted, motivated or retained by it. But, recently I was reminded of a simple lesson that is often missed in the rush of deliverables and priorities....
On October 7, 2013 the NASDAQ OMX filed a petition with the SEC requesting they require ISS, Glass Lewis and similar investor advisory firms to open up about their models, methods and potential conflicts of interest. As the influence (and revenue) of these firms has grown, there has been increasing concern about the opacity of...
The dreaded CEO Pay Ratio Disclosure is almost here! The SEC has proposed the rules for the regulation required by Dodd-Frank. Companies have railed against this rule as being complex, expensive and more hyperbole than helpful. Activists have clamored for the rule to help expose the lack of link between CEOs and those who work...
