Daniel D. Coleman, CPA, CEP Partner, Infinite Equity
Dan's biography will be available shortly.
Whether it’s the board of directors, institutional investors, or proxy advisory firms, the expectations surrounding the processes used to set performance goals for incentive compensation are under enhanced scrutiny. Target performance goals, such as goals based on revenue, earnings, and returns, are often based on the projections included in a company’s budget, which has been thoroughly vetted. But the threshold and maximum performance goals are often based on an arbitrary percent of the target performance goal, without any analytical or quantitative support. However, without understanding the chances of performance being (a) below threshold, (b) between threshold and maximum, or (c) above maximum, it’s difficult to understand the true value of the incentive. The presenter will discuss how to combine the probability of different levels of performance with the vesting criteria at each level of performance, so that companies can ensure their incentives are a fair bet – neither favoring the player (the employee) or the house (the company).
This program is free of charge. Virtual meeting log-in information will be provided upon your registration.