Equity Expert: A Podcast from the NASPP
News, insights, and conversations on all matters equity and executive compensation. Created and moderated by the National Association of Stock Plan Professionals, the largest association for the stock compensation community, with over two decades of leadership providing expert resources, education, and other benefits for more than 6,000 members.
Equity Expert: A Podcast from the NASPP
Half Empty or Half Full? A Closer Look at TSR Awards
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National Association of Stock Plan Professionals
We ask Terry Adamson of Infinite Equity what he thinks about paying out TSR awards when performance is negative, using TSR as a modifier, custom peer groups and more.
Episode Notes:
- How much more usage of TSR awards can we expect (1:50)
- Custom peer groups (4:06)
- Paying out awards for negative TSR performance (8:44)
- Using TSR as a payout modifier for other metrics (11:35)
- The benefits our measuring outperformance (13:38)
- Barbara uses a football metaphor (19:37)
- Other market-based alternatives to TSR awards (20:34)
- Barbara and Terry plan a follow-up podcast on relative Sharpe-Ratio awards (24:20)
Resources Mentioned in this Episode