Performance Award Particulars and Pitfalls

Performance based equity awards offer companies a transparent and effective way to align executive compensation to corporate performance. Per the Dodd Frank Act and Say-on-Pay, shareholders have increasingly voiced their views on executive compensation, and performance awards illustrate the direct relationship of pay to performance. Watch this video from Pamela Greene, Member of the law firm Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., as she discusses key elements of performance awards – including examples of different types of performance metrics, crucial considerations when developing a performance award plan, and two major pitfalls to avoid when designing a performance award plan. Also, be sure to visit the Mintz Levin Securities Matters blog.