August 10, 2016
NASPP To Do List
Conference Hotel Is Filling Up
Don’t wait any longer to register for the 24th Annual NASPP Conference—the Conference hotel is quickly filling up. Register today while rooms are still available.
Equity Expert Podcast: Balancing Expense with Perceived Value
Check out our latest Equity Expert Podcast featuring Dan Kapinos of Aon Hewitt and Mike Palermo of Fidelity on making your equity awards as efficient as possible when it comes to plan cost and incenting employees. A few of their suggestions:
- Using a more nuanced version of the Black-Scholes model
- Not paying dividends on unvested awards
- Post-vesting holding periods
- Payout caps on performance awards
Listen to the podcast to learn more about these suggestions and hear Dan and Mike’s other ideas.
Re-Evaluating TSR
The article “Re-Evaluating Total Shareholder Return as an Incentive,” by Brett Herand of Pearl Meyer (originally published in workspan) takes another look at the use of relative TSR as a performance metric for equity awards. Herand discusses recent research demonstrating weaknesses in the effectiveness of TSR as an incentive. He notes:
By shifting from an rTSR plan to a plan based on financial and/or operational performance, telling employees that they will be given additional control over their own compensation destiny, as opposed to being overly exposed to market vagaries, can be powerful.
NASPP To Do List
Here’s your NASPP To Do List for the week:
- Check last week’s Equity Expert podcast, “Five Things Barbara Baksa Learned about Employee Choice Programs.”
- Take the Question of the Week Challenge.
- Saddle up, cowpoke! The 24th Annual NASPP Conference will be held in Houston from October 24-27. Register by September 9 to save!
- If you aren’t an NASPP member, join today.
- Check out the NASPP’s LinkedIn, Facebook, and Twitter pages.