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Sarbanes-Oxley News & Developments
Stock Options Are Out, Cash Bonuses Are InChristian & Timbers recent report claims more than 50% of clients prefer cash bonuses more than stock options.
> > In the past six months, reports the executive search firm Christian & Timbers, its clients have weighed cash bonuses more heavily than stock options more than 50% of the time when negotiating pay packages with top executives.
According to Steve Mader, CEO of Christian & Timbers, Boards are seeking to measure added economic value from activities of the CEO and top executives, The result is they are more focused on company performance versus short-term stock price. Compensation and bonus structures are now based on hard earnings and cash generation. In the past, a company could be performing well in the stock market, yet losing masket share to competitors. Now boards are basing bonuses on competitive comparisons of earnings, margins, and market share.
Source: CFO
Published:2003-08-25
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