Thus, organizations missed an opportunity to make important changes in the basis for executive incentive payments.
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More than half of all major U.K. companies link long-term executive incentive payout to total shareholder returns.
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Most of the executive incentive plans run by Barclays, including old plans that have been discontinued, run for three years, with equal tranches of shares released in each of the three years.
But share-price performance is not a formal factor that the board's remuneration committee is supposed to take into account when deciding bonuses - because to do so would give too great an incentive to the chief executive to take dangerous short-term risks to temporarily boost the share price.
Every business executive should be asking: What positive incentive is there for employees to get the most value out of the health care dollars spent on their behalf?
The 2010 rise in executive compensation was largely due to new incentive plans that were designed to reward them, as were their old ones almost exclusively based on the financial performance of their firms.
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My sense is that this is not simply about social justice, but also aimed at providing women at mid- and upper-level management positions some role models and opportunities at executive and directorship levels and therefore the incentive to gain the experience necessary to succeed at these levels.
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Publicly listed companies would do well to start building incentive pay programs that better align executive pay with long-term shareholder interests.
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What incentive does Meister have to be tough on executive compensation when he is dependent on serving on that board for his own current income stream while he gets his own fund set up?
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The company also said Chief Executive Lawrence Kellner and President Jeff Smisek will not take salaries or incentive pay for the rest of the year.
"It's definitely a problem, but when brokerages are banned from using research for marketing, there isn't much incentive for them to cover smaller firms, " says Louis Thompson, chief executive of the National Investor Relations Institute.
In the course of a conversation with Douglas Stives, a certified public accountant in Red Bank, New Jersey, one tech executive confided that he was the only one in his office planning to honestly report his incentive options for 2000.
His award under the Incentive Plan is payable entirely in cash, and is correspondingly smaller than those made to the other Named Executive Officers.
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