Performance awards - admin treatment
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Had a question on how typically company HR wishes to track performance awards - especially cases where the performance is more than a 100%
Does it make sense to track a separate line item for the incremental shares?
OR
Is it easier to adjust the original shares awarded based on the performance and track it as a single award?
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For example - if employee is given 100 shares based on performance and he meets the target at 200% -
is it easier to have a separate line item to show the 100 incremental shares to the employee
OR
Is it easier to modify records to show 200 as the now awarded number of shares to the employee?
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Mathangi,
Performensation has a tool called GEMS that can do this both ways (depending on the accounting and stock administration systems being used).
Generally, I find that participants like the concept of a base award, then showing additional shares. Accountants like the idea of showing what they need to acount for as a starting point, with detailed adjustments.
Happy to discuss this offline