Should Stock Options be Viewed as Pay Increases?

Balaji Krishnamurthy

This article was written prior to the merger with Think Shift under its previous name, LogiStyle.

The thought for the month is a new way of looking at stock options: as an increase in the targeted variable pay for the recipient.

This is not about expensing options, or even about how they should be expensed. Rather, this is about how management should view the award of options and correspondingly expect performance from the recipient. Should management view an employee with a large number of vested, in-the-money options as more expensive to the shareholder, and thus expect a greater level of contributions to the company than the contribution they expect from another employee without such options? Should they take the outstanding options into account in performance evaluation, akin to the natural differences in expectations of performance from employees at different pay levels? More poignantly, if the company decides to reduce its workforce should an employee with a greater number of options be viewed as being more expensive and allow that to factor into their decisions of layoff?

We, at LogiStyle, have been developing these thoughts and I have personally spoken on this subject several times. We are planning on documenting this in the form of a written article, sometime in the future. Meanwhile, if you find this intriguing, or even disagree with it, please do write or call and share your thoughts with me.

Food for Thought is our way of sharing interesting concepts on corporate leadership and management with others who might find it useful. The thoughts offered are intended to be controversial and thought provoking. They are intended to help our readers intentionally realize their potential, what we call Potentionality.


Sign up to receive content from our “Think” leaders:

啦啦啦免费视频-啦啦啦在线视频免费看-啦啦啦在线观看视频 忘忧WWW
北京冬奥火炬宣传片获金花环奖 长津湖 国际人士热议中共十九届六中全会 尚气与十环传奇 速度与激情9 大连一密接者擅自点外卖聚餐被调查 大连现超级传播者26人在同一传播链 俄方回应卫星碎片危及国际空间站 逆局 印度首都准备封城 安娜贝尔 许家印为恒大注入超70亿续命资金 美人鱼 男子写80页PPT拯救爱情却离婚 流浪地球 斛珠夫人 许家印为恒大注入超70亿续命资金 大连现超级传播者26人在同一传播链 意大利错失直接晋级世界杯资格 印度首都准备封城 扬名立万 国际人士热议中共十九届六中全会 加拿大一枝黄花到底是什么? 大连现超级传播者26人在同一传播链 动物世界 林丹世界排名被正式移除 大连现超级传播者26人在同一传播链 大连现超级传播者26人在同一传播链 加拿大一枝黄花到底是什么? 印度首都准备封城 扫黑风暴 扫黑风暴 我和我的家乡 加拿大一枝黄花到底是什么? 男子体检血中抽出2升油浆 十九届六中全会公报发布 红色通缉令 外交部回应拜登重申不支持台独 意大利错失直接晋级世界杯资格 周冠宇成为中国首位F1车手 24岁救人牺牲消防员获批为烈士 十九届六中全会公报发布 扬名立万 国足战澳大利亚大名单:4归化在列 男子写80页PPT拯救爱情却离婚 蜘蛛侠:英雄归来 扫黑风暴 罗永浩吐槽苹果文案没文化 你好李焕英 男子写80页PPT拯救爱情却离婚 我和我的家乡 十九届六中全会公报发布 夜色暗涌时 长津湖 尚气与十环传奇 中国共产党第三个历史决议全文发布 加拿大一枝黄花到底是什么? 中美元首会谈重点内容 胡锡进谈中美元首会晤 红色通缉令 大连一密接者擅自点外卖聚餐被调查 得知母亲出事男子在地铁痛哭 得知母亲出事男子在地铁痛哭 我要我们在一起 林丹世界排名被正式移除 斛珠夫人 国际人士热议中共十九届六中全会 我和我的祖国 中美元首会谈重点内容 俄方回应卫星碎片危及国际空间站 罗永浩吐槽苹果文案没文化
巩义市| 张北县| 西青区| 宜兴市| 武隆县| 察隅县| 和平区| 措勤县| 襄垣县| 兰考县| 马公市| 蕉岭县| 阳曲县| 大田县| 定兴县| 苗栗市| 河津市| 垣曲县| 偏关县| 垣曲县| 双柏县| 苍山县| 黄山市| 历史|