Looking at Equity Use from a Retention Perspective

As the economy improves, many top executives are becoming more open to other opportunities - especially if their annual incentives or equity awards appear unlikely to pay out for several years due to the company's subpar financial performance.  If executives also believe that the lackluster results are outside their control, it's further motivation to seek recognition elsewhere. 

This article discusses how Compensation Committees can address the need to redesign and recalibrate equity-based awards so they will continue to align with performance, but remain effective as a tool for promoting retention.