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Long term incentives

ANAnuja Nair7y ago
Hi sir, when it comes to long term incentives such as share options and performance stock units (company shares), am I right to say the following ? Both should be subject to meeting performance targets Share options should have a vesting scheduled attached, whereby, only a certain number of options can be exercised each year.Otherwise, it can result in short termism practices. Performance stock units(company shares) may be awarded with limits on their transferability for a set time. Otherwise, it can result in short termism practices. Example : The director can only sell the shares when they retire.
kengarrettkengarrettTutor7y ago#1
That is all fine. The other thing that could be done with performance stock, is not to give them now, but to promise them for the future if a certain level of performance is reached.
ANAnuja Nair7y ago#2
okay thank you.
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