How to Share Value with Employees who Drive Long-Term Business Growth.
If you are a company leader with ambitions for business growth, your compensation strategy needs to make it easy for your employees to invest in your vision—especially your key performers. It should help build a unified financial vision for growing the business. Among other things, this means you will need an effective way to share long-term value with those who help create it. The dilemma is finding the value- sharing approach that will best help you drive the sustained performance you seek. Read More
8 Reasons Why Most Bonus Plans Fail
Generally, there are two categories of companies that have bonus plans for their employees: (a) those that know they have bad plans, and (b) those that think they have good plans but actually have bad ones. A harsh assessment? Perhaps. But a true one nonetheless. Certainly, there are some good plans out there. But they are pretty hard to find. Read More
Why Long‐Term Value Sharing Matters
Value sharing is an issue that, sooner or later, every enterprise leader must confront. For example, many responsible for driving business growth wonder whether some kind of long‐ term incentive will enable higher performance; and if so, which approach is best—stock, performance units, phantom equity or some other value sharing plan. Read More
Phantom Stock: The Ideal Plan for Growing Private Companies
“I have a key employee who’s asking for some stock in the company or else he may move on—should I give it to him?” This is a question with which many owners of closely held businesses wrestle. It is multi- layered in its implications; however, the answer is really pretty simple: “No. But you should be glad he’s asking for it! This is a great opportunity.” Read More