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Category: Incentives & Equity

Equity Awards in VC-Funded Companies

Equity Awards in VC-Funded Companies 2011 resulted in lower equity holdings for executives in technology and life sciences companies.  Equity holdings as a percentage of company stock dropped 13 to 18% from 2010.  Equity awarded at hire also dropped.  These drops in equity do not reflect the underlying value of the company but rather a [...]

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Many organizations use discretionary bonuses at year-end as a way to reward employees for their contributions.  (Discretionary bonuses are those that management determine without a fixed formula or a “quid pro quo.”)  Yet we often hear horror stories about how difficult the decision making process is for managers.  We also see bonuses for top performers [...]

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Paying for Performance with Small Merit Budgets

Merit increase budgets have been at all time lows recently.  The general consensus is that merit increases budgets will remain fairly flat for the foreseeable future.  One way to think of this is “3% is the new 4%”.  To be effective managing pay, we need to come up with some new pay models.  Here are [...]

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When money is tight, recognition programs are a great way to stretch your budget and keep employees engaged and focused on key results.  When managers feel especially crunched for time, recognition programs can drop into the background and become underutilized.  However, this is the most important time to emphasize these programs. In a survey by [...]

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