Efficiency in Action: Designing PSUs for Optimal Performance

The last two years have squeezed equity compensation in a way that hasn’t been seen for over a decade. For many, this has meant stock price stagnation and a drain on share pools. But even the market’s top performers have had their hands full attracting and retaining the right talent. Equity—especially performance equity—is back in the spotlight, and to be effective it must deliver retention and incentives at a reasonable cost.

In this webcast, we’ll explore best practices and common pitfalls in designing efficient PSUs with appealing optics. We’ll cover the accounting theory that makes it possible, as well as specific examples. In particular, we’ll discuss:

• How to think about equity efficiency from different angles, including accounting expense, governance, and dilution
• Ways to fine-tune rTSR and other market awards for cost efficiency without becoming overly punitive
• Opportunities and risks with non-market (performance) conditions, as well as unique combinations of market and performance conditions
• Best and emerging practices to optimize award designs in light of disclosure and proxy advisor guidelines
• Novel award structures that can deliver upside for outperformance without locking in high upfront costs to the company
• Share pool management strategies to maximize flexibility amid constrained budgets

Whether you’re in accounting and interested to learn how the accounting rules can favorably or unfavorably impact compensation strategy, or are directly involved in compensation design, this webcast will challenge and expand how you approach equity compensation design and reporting.

CPE Credits: 1.0 (available to live webcast attendees)
Field of Study: Specialized Knowledge
Program Level: Overview
Additional CPE details