3 ms·
Long vesting schedule isn't a viable solution for many companies. I think 3 year is reasonable. But this is what I would do if I were in charge. - Eliminate o
by pcurve 12y ago
Long vesting schedule isn't a viable solution for many companies. I think 3 year is reasonable.
But this is what I would do if I were in charge.
- Eliminate options grant because if share price declines, execs are not exposed to downside. Yet when share price goes up, it can be a complete boon.
- Cap ratio of base salary to incentives so that bonus is no more than 100% of your base. When much of your total compensation derives from your bonus, you are not incentivized to make 'right' decisions.
- If you want to participate in equity sharing, execs need to make conscious decision to spend part of their after-tax paycheck. This is having true skin in the game.