by: Scott, Bill
Source: The Foundation for Enterprise Development
At many large, public companies there seems to be a belief that the more equity you award to senior management—most often in the form of stock or stock options—the more those executives will apply themselves and the more the company will prosper. This must certainly be the case, right? How else to explain the huge stock-based compensation packages offered to CEOs and other top executives at most Fortune 500 companies?
However, our experience with more than 35 years of equity compensation at Science Applications International Corporation (SAIC)—the largest employee-owned science and engineering firm in the United States—doesn't support that notion.
Link: Myth #2: More Employee Ownership Is Always Better
Publication Date: 2008-01-01