Incentive #1
Company has a high ____ plan.
Visibility
Engineering firm has ___ prospects
Growth
A high growth company installs a ____ plan
Stock Appreciation Rights
30 year old service company has ____ and younger workers
Two founders each own ___
50%
Plan rewards ____ thing
One
The company increases in ____
Value
Acronym for Stock Appreciation Rights
SAR
Opportunities for emerging talent are ____
Limited
One executive has ___ stock options
4%
What is that one thing?
Growth in annual profit
Next Gen leadership ____ ship
Jumps
The greatest advantage of SARs is___
Flexibility
Partners buy in and sell out at ___ value
Book
The two 50% owners now own ____ of the stock
48%
What is the long term strategy?
Sell to a strategic buyer
Buy in is very ____ for next generartion
Costly
The liability associated with the plan was ___ than annual profit
Greater
Older partners refuse to sell shares effectively ____ __ ____
Retiring in place
This resulted in a ___ minority discount
20%
The bonus plan ____ the growth strategy
Defeats
Growth ___ and never recovers
Stalls
The plan was ____ the company's growth plans
Strangling
Several executives eventually _____
Depart
Loss of value reflected loss of _____
Control