Summary
Who’s managing your broad-based equity compensation? In most firms, it’s not the person who started the program. Usually, the founder is no longer at the company; the board of directors is not involved; and the human resources department does not understand that it’s really a talent program, not a spending program. As a result, most firms decide how much equity to grant by copying their competitors or considering the views of Institutional Shareholder Services. Neither approach is based on solid research evidence. This article summarizes the latest empirical research to help your company develop a comprehensive and robust equity compensation plan.