Do you have, or are you considering, Performance-Based Equity Programs?

the client I am currently working with, is preparing to grant performance awards with multiple triggers

Yes.  We are granting executives PSU this month with an EBITA metric.

We had them from 2005-2007.  They are restricted shares that time vest in 5 years.  The could advance based upon performance in years 3 or 4.  The measure is relative TSR.

Ah, nothing like reviewing a Plan Document on a Monday morning, especially when it has Performance Awards with criteria that would make any plan administrator, vendor, broker or software designer cry.

Maybe it's time that we get back to basics, a long time ago Stock Options were the Performance Awards, and considering where stock prices are maybe they should be again.

I'll answer Dan's question with a question, is anyone revisiting Stock Options instead of heading down the path of Performance Award righteousness?

Time for my coffee

Dean Smith

Yes we do.  We have performance based grants to a select number of executives.  Based on business peroformance 1/3 vest after 1 year.  If the metrics continue to perform then the remaning 2/3 vest in the following year.

Yes,

We have performance based compensation for the executive and director level of the company.  With a three year vesting.  There are just less than 100 participants.

In the recent past, we had performance LTI based on 2 factors: A) Economic Value Added (EVA), and B) Total Shareholder Return compared to the S&P 500.  Measured over a three year cummulative period.  Don't forget to include provisions on how to apply the performance adjustment in the case of a change in control and results are not available.  We pay dividend equivalents at the end of the three year period after the performance period.  Also beneficial if you make the entire award compliant with 162(m).