THOUGHTFUL PAY PRACTICES

Stock Price Performance Shares – A New Approach to Long-Term Incentives for Executives

March 20, 2009

The current economic downturn is exposing the vulnerabilities of traditional long-term equity incentives, such as stock options and RSUs. In this report, we discuss “stock price” performance shares, an alternative equity vehicle that overcomes many of these problems while providing strong motivation and retention incentives.

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Five Tips for a Successful Employee Stock Plan Proposal

February 17, 2009

Here are five tips to help you obtain shareholder approval of a new employee stock plan or a share reserve increase for an existing plan.

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Dealing with Performance-Based Equity Awards upon a Change in Control

November 12, 2008

Implementing a performance-based equity plan raises several challenging issues. One that is often overlooked is the potential disposition of awards in the event that the granting company is acquired during the performance period. This article summarizes the various approaches that are used to address the treatment of awards upon a change in control and evaluates their relative strengths and weaknesses.

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Expecting the Unexpected – Preparing Your Change in Control Program for an Unsolicited Takeover Bid

October 28, 2008

With the recent volatility in the equities market, the stock prices at many technology and life sciences companies are at or near all-time lows; making them attractive targets for an unsolicited takeover bid. Here’s a process for evaluating whether your change-in-control program is meeting your objectives in this uncertain environment.

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Implementing an Option Exchange Program – How To Decide Whether It’s Right for You

October 21, 2008

Many companies are facing significant levels of underwater stock options due to the recent volatility in the stock market. We offer a roadmap for evaluating whether an option exchange program is the best response to this unsettling development.

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