Management Equity: Driving the Right Outcomes
The success of any company turns on the quality and the performance of its senior management. Recruiting, retaining, and motivating those key individuals is, therefore, a high priority for investors. Providing these individuals with the opportunity to acquire a stake in the company is an effective way of achieving these goals. Equally, most experienced executives will regard an equity component as an important and essential part of their package.
The question, therefore, arises as to how to structure this equity award to best incentivize and retain senior management.