Last month, I wrote about your company's location to attract and keep top performers. One very effective way to do both is to compensate your major employees with capital.
Performance pay is an important factor in maintaining talented people; combining it with a sense of ownership or future shares of the business, you
That is what fairness does. The basic theory behind stock-based rewards is simple: pay your people generously. ..
It's tough. :
Advisory board, strategy, growth strategy, strategy planning, executive coaching, evaluation,
Article body:
Last month, I wrote about your company's location to attract and keep top performers. One very effective way to do both is to compensate your major employees with capital.
Performance pay is an important factor in maintaining talented people; combining it with a sense of ownership or future shares of the business, you
That is what fairness does. The basic theory behind stock rewards is simple: generously, with financial values to help them create, to pay your people in the future, and for them to leave In this article, we Let's look at three ways to do it.
Why does the stake share allowances for performance bonuses, such as other variable compensation, and profits? Where both the bonus and profit sharing plans are not the performance of the past period, but where you want your people's attention, tilting to reflect current and future efforts, they are fixed amounts, paid once, creativity The amount of hard work, imagination or hard work can not make them bigger. Bonuses and profit sharing are typically a single payment that today's what-have-you-done-for-me-lately atmosphere is soon forgotten. Finally, bonuses require cash and profit sharing needs profits. Companies that are growing rapidly may be missing one (or both) of these.
Capital addresses these shortcomings. Fairness is a continuing bonus. The value of stock-based compensation can often increase considerably over time. The shares acknowledge your employees' past contributions, but their real payoffs are still for the work to be done-and your people are rewarded in real terms, with stock rewards on a real basis The cost of it is cheap, especially relative to loyalty it can buy. In addition, cash does not change hands at the time of the stock bonus, so your company can use it as a reward even if it is troubled with cash.
There are other positives on stocks. In particular, if your business is likely to be publicized or acquired, equity is better, your talented man is larger and wealthier with your small business And the highlight of the fair is that the business is theirs Underline common interests among your company owners as "ranks and files", and help
Outright equity grants
Implementing outright equity grants is easy. Your company grants a certain number of shares to key employees. That's it. Stocks are more tangible than any other format. The popular key in stock does not have stockholders as what is seen by people.
But there is a drawback. In other words, if someone has a better offer, they can leave it and take it home. It also leads to a second shortcoming: stock value is taxed as recurring profit for employees of the current year-as a result of double punch, spending extra cash-stock subsidies are also possible with dilution management And decision-making ability.
Important Success Tips
To use a stock as a vehicle for holding an employee, you need a holding period before you can sell the stock. Remember to keep the first refusal right of any sale-you don't want those shares to find a way to unfriendly hands. In addition, in the case of closing requires the shareholders to provide the shares for repurchase. (Provided-don't require your company to buy them.) Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Money Light Money It's delicious.
Non-qualified stock options
Unqualified stock options are a powerful and efficient way to maintain your employees. Option holders usually have the right to buy company shares at the current grant value, the "grant price". As your company gains value, the value of options increases. Options are often the right, benefits for employees before they can stick to and need employees to continue to contribute to the company, and can "exercise" to buy stocks. Comes from the tax defer function: there is no tax due to which the option is exercised. Importantly, the option itself does not carry voting rights.
Important Success Tips
Because you can subsidize non-qualified-options at full discretion, use rewards, personals, and communication levels. Also, establish a vesting period that occurs based on the "staircase"-for example, 50% best in two years, second 50% best in another two years. This type of construction gives your employees the "choice" to leave, but holds an important carrot for staying.
Phantom stock
Phantom's inventory is an accounting fiction that allows top people to participate in increasing the value of the company. Unlike "real" inventory, phantom inventory does not convey the actual ownership of the business. The phantom share is an employee's account credit for an amount equal to the company's "real" share value. At the same time, the change in stock value of the account is the distribution of dividends and other. There is no taxable income for Phantom stockholders until they are "refunded" by the employee.
There are two types of phantom stock plans: "Growth" and "Basic". Under the growth plan, at the time of redemption, the employee receives an amount equal only to the appreciation of the stock account. Under the "basic" plan, employees receive the total value of the gratitude plus the true value of the stock.
Important Success Tips
Phantom shares give you shares when you do not want to dilute either ownership or control, or you have a Subchapter S and the vesting period of the largest phantom share of thirty-five shareholders: , Minimum holding period is required. If the employee leaves before the retention period expires, he or she loses the value of the stock. Also, you can establish a payment period after time to redeem Phantom's stock for cash. That is, your people do not have to leave for cash.
Evaluation
Shared values for public companies are determined in the market. Private companies must engage in some kind of evaluation process that is outside the scope of this article-but some "success rules" apply.
1) Periodically, published, at intervals, at least once a year.
2) Document your evaluation process so that your shareholders can understand it.
3) Establish capital reserves and make them public, to enable the redemption of shares.
Following these three rules will increase the sense of your employees that their stock (and options) have real value and they will remain
EQ vs. IQ: Why smart people fail?
Why do smart people fail?
Why do people succeed while more society simply fails with what is reasonably IQ?
It's tough. :
Management, success, consulting, intelligence, el kamony, EI, EQ, IQ, profit, support, skills, self-development, self-improvement, case study, organization, Mohammed
Article body:
First of all, it is necessary to understand that emotional intelligence (EQ) is not the opposite of intelligence quotient (IQ), and EQ actually resembles academic intelligence and cognitive ability that are complementary to IQ. In Kemper). Studies show that Albert-Einstein's excellent intellectual ability may be related to the part of the brain that supports the psychological function called tonsils The nature of EQ and IQ, however, learn them and The ability to develop is different. IQ is a genetic possibility established at birth and fixed after a certain age (pre-pubescent) and can not subsequently develop or increase. Conversely, EQ can learn, develop and improve at any age, and research is actually another difference between us to learn the increasing emotional intelligence as we age. IQ is a threshold function that only shows the way to your career and allows you to get work done in a particular field, so hitting a balance between IQ and EQ is a management success It is an important element. However, IQ-based skills are considered to be the skills you need to do the average job, or "threshold skills". On the one hand, EQ-based abilities and techniques perform much more effectively, especially at high levels of tissue where IQ differences are slight. 85% were attributed to the IQ, not the EQ-based ability, when matched against the average of the comparative studies star performer top tissue level. Dr. Goreman says that although the organization is different, but has different needs, it is generally by 80-90% to predict the success of the organization
EQ vs. IQ: Case Study
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