December 20, 2017 Executive Compensation Executive & Director Pay Design Articles

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Executive & Director Pay Design

A High Risk, High Reward Pay Orientation

A financial services firm with revenues in excess of $1 billion utilized a price-vested options approach with rigorous goals to align with the company’s high-growth strategy.

The strategy was successful, and after the stock price nearly doubled by the end of the performance period, the CEO realized values in excess of 10 times what the value was when the options were granted to the executive.

Introducing a “high-risk, high-reward” pay design that allows companies to provide outsized wealth creation opportunities for outsized performance.

View the full article as it was originally published.

Stephen Charlebois

This article was originally published in Directors & Boards.

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