Executive share options
Article Abstract:
Executive Share Options (ESOs) are incentive schemes given to motivate senior executives. Share options are rights to buy or sell shares at prearranged times and prices. Business firms have reward systems for both employees and executives. For employees, there is the concept of profit-related pay (PRP), cash incentives given for contributing to the firm's profitability. Employee performance is however difficult to monitor so that most firms emphasize ESOs. ESOs have the following advantages: they involve no financial risk to shareholders; they offer tax-efficient remuneration; and they effectively reward deserving managers. Since executives comprise a small percentage of a firm's employee population, their contribution to the firm's profitability can be objectively assessed.
Publication Name: Journal of General Management
Subject: Business, general
ISSN: 0306-3070
Year: 1991
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Rewarding top managers for company's success
Article Abstract:
A method is proposed for designing senior management compensation packages in a manner that effectively rewards long-term performance. The method involves bringing together under a single rewards system all the executive compensation measures found to be effective by various progressive companies. These include linkages to return on investment, percentage market share growth, and stock price changes over a five-year period. The system enables a corporate board to select an appropriate rewards scheme that promotes both effective short-term management as well as long-term performance.
Publication Name: Journal of General Management
Subject: Business, general
ISSN: 0306-3070
Year: 1991
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Pay, involvement and appraisal
Article Abstract:
Pay systems and wage levels can be influenced by external factors such as a firm's relative position in a marketplace. The establishment of wage differentials reflecting varying activities within an organization is therefore a key concern for many companies. Wage-setting techniques that can be used to link job training and other internal labor measures to key external influences include the establishment of effective job evaluation, employee appraisal, and profit-sharing programs.
Publication Name: Journal of General Management
Subject: Business, general
ISSN: 0306-3070
Year: 1991
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