Participant Communication & TSR Tracking

Build employee buy-in and literacy in your company’s equity compensation program.

Businesses take great care to sort through award design options, model different scenarios, align with shareholder expectations, and bring the cost of their equity compensation programs to an affordable level. But if recipients don’t understand the program, it can fail to meet its goals for motivation, retention, and performance.

Performance-based equity awards amplify this risk. Relative total shareholder return (rTSR) awards, for example, have hundreds of moving parts. These can trigger confusion and skepticism with participants—especially if they believe the metric is beyond their line of sight.

In response, boards are challenging compensation professionals to provide communications for equity compensation that provide clear, timely information about the implications of proposed awards under different scenarios. They’re equally adamant that management keep participants engaged and informed throughout the life of the award.