| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 2334.1 | may be a good idea | CADSYS::HECTOR::RICHARDSON | | Tue Jan 19 1993 14:24 | 5 |
| Maybe a good idea! I *used* to own a few times my annual sdalary in
DEC sotck, but I don't any more - and I didn't sell ANY of it (fool
that I am).
/Charlotte
|
| 2334.2 | YES! | REGENT::REGENT::BLOCHER | | Tue Jan 19 1993 22:17 | 13 |
| I think its an excellent idea! That way if the stock drops
they have to purchase more shares to cover the multiple of
their salary. Their purchases create demand which helps bring
the price back up so that the rest of the shareholders don't
suffer too much. If it keeps dropping, then the officers end
up owning all the stock (holding the bag?) and essentially
become self-employed. If it goes up, then they can sell a few
shares and collect their well-deserved profit/bonus.
Long-term it would have a stabilizing effect on the market price,
and would also promote and encourage long-term thinking/planning
in running the business.
|
| 2334.3 | | ECADSR::SHERMAN | Steve ECADSR::Sherman DTN 223-3326 MLO5-2/26a | Wed Jan 20 1993 09:32 | 7 |
| I like this idea, too. Actually, it might be an improvement if Digital
went back to granting stock options rather than cash as an incentive.
Seems to me that Digital has been moving AWAY from encouraging top
executives to have vested interest in the company by giving them cash
instead of stock.
Steve
|
| 2334.4 | Stock not Cash.... | RUSVAX::RUSSELL | Steve Russell | Thu Jan 21 1993 10:29 | 16 |
| I like this idea also. .3
Digital granting stock options rather than cash as an incentive.
The incentive would be a set number of shares of stock, not a fixed
dollar amount, if the overall goals of the COMPANY are met.
This way, if the stock goes up it's worth more money.
This would be a incentive not only to meet your own goals, but
and incentive to work with others to make sure that they meet
their goals as well.
Everyone wins....
Steve
|
| 2334.5 | | MU::PORTER | savage pencil | Thu Jan 21 1993 12:14 | 20 |
| >Digital granting stock options rather than cash as an incentive.
We're stuck in a loop. DEC used to have stock options as an incentive.
Now it has some other schemes (there's a different stock scheme for
rank-and-file, and I haven't quite bothered to explore the
ramifications of the change, and then there's this cash award
thing which people are talking about).
----------
re .0 etc.
Is the stock-holiding requirement expressed in static terms
(like, N times annual salary based on a price of $X/share) or
will it really be necessary (as implied elsewhere in this note)
for them to maintain a certain dollar value of stock, hence
buy more stock as the value of the stock falls?
It wasn't really obvious that the latter would be the case,
although it's a nice idea...
|
| 2334.6 | How I think it works | CSC32::K_KINNEY | | Thu Jan 21 1993 14:16 | 12 |
|
re .5, I didn't see in the article how they were figuring
(for Kodak) the actual cash amount. To me, it would make
sense to check that quarterly or whatever. If the stock
price has risen, the individual could then sell off the
excess if s/he wanted and therein lies the bonus. If the
price has gone down, a purchase is in order and there is
the price to pay for that happening (the negated bonus if
you will) and the motivation to prevent that from happening.
kim
|
| 2334.7 | I don't think so | CSC32::K_BOUCHARD | | Mon Jan 25 1993 13:59 | 6 |
| You didn't mention anything about penalties. There are none? This would
be a great idea if there was some provision for enforcement,like say,a
pay cut if the stock ownership requirements aren't met. Do you really
think this could happen at DEC? Was anybody suggesting that?
Ken
|
| 2334.8 | Penalties? | CSC32::K_KINNEY | | Mon Jan 25 1993 19:02 | 17 |
|
What penalties? I think if I was in one of their positions
and the "boss" told me that was a condition of my continued
employment, I would do it. I don't work for Kodak so I don't
know how it is being implemented but that seems to be
a workable presentation of the idea.
Nobody was suggesting this could or would happen here. I thought
it was interesting what another company is doing to tie performance
to compensation. Looks like a pretty direct link to me. Either
the gang at the top in Kodak thinks they are capable of meeting
the challenge or they will fold their cards and leave the table.
Suffice it to say, the ones who accept this challenge are in the
game to win and they will do whatever they can to make certain
they do. If they win, Kodak does too.
kim
|