Long-term or Mid-term Incentives: Avoiding Award Design Homogenization
Business strategies take years to set in motion. For a standard three-year performance period, the payout outcome can depend more on the timing of the performance start and end dates than actual strategy execution. This begs the question: Are executives really rewarded for long-term shareholder value creation, or for short-term volatility?
Join Equity Methods’ Takis Makridis along with Eric Hosken of Compensation Advisory Partners and Dan Marcec of Equilar for this webinar hosted by Equilar. We’ll share empirical research on how actual payouts for S&P 500 companies would have differed had the performance period been expanded to five years. While standard three-year performance plans will always continue to have merit, we’ll also explore practical design alternatives that can enhance the long-term incentive focus of the overall incentive program.
You can access the webinar here.