In the panic of the pandemic last year, many companies pondered the fate of their performance awards. It turns out much of the concern about payouts was misplaced, as many companies paid out at or above target. But that doesn’t mean performance anxiety isn’t a worthy exercise! Our findings show other areas of performance-based compensation that may deserve their fair share of attention.
To help companies make better decisions about their performance awards, the NASPP and Fidelity worked together to help uncover what is really happening with performance awards with a 360° outlook on the current and future state of performance-based equity awards. With hot-off-the-press June 2021 data, I’m sharing some of the highlights here. What did we learn?
It probably isn’t a surprise to most, but things are just different for technology and life sciences companies:
Looking for a place to make an impact on your company’s performance awards? There are lots of opportunities! Participant understanding is a great place to start.
Our survey allowed us to drill down into some other fascinating topics.
These findings can help companies benchmark their performance practices and spot opportunities for improvement. Want to learn even more? Check out Barbara Baksa’s five-minute video, “The Outlook on Performance Awards,” in her binge-worthy Equity in Brief series. Enjoy!
As head of Fidelity Stock Plan Services' Industry Relationships and Thought Leadership, Emily drives connections with the stock plan industry and focuses on developing data-driven insights on equity compensation plan design, usage, and effectiveness based on quantitative and qualitative research to help plan sponsors make more informed decisions about their equity plans and processes.
With over 20 years in the industry, Emily is recognized for deep knowledge of and enthusiasm for equity compensation. She is a frequent speaker and author on topics to help educate employers, advisors, and the media. Emily is a board member for the Certified Equity Professional Institute, member of the NASPP Executive Advisory Committee, and a recipient of the NASPP Individual Achievement Award. She is a Certified Equity Professional and holds Series 7 and 63 securities registrations.
Results based on 2021 research by the NASPP on performance awards.
The NASPP and Fidelity Investments are not affiliated.
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