Typical package base performance nonequity equity

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Unformatted text preview: . Dictated by supply ­demand. Risk ­adverse. Need such money to incentivise them. Executive Power Theory: Little connection between compensation and performance. Typical Package: Base + Performance (non ­equity) + Equity Based + Others(perks) Restricted Shares: Shares with restrictions on when it can be sold. Usually 3 years. Need notice of sale. Sold gradually. Executive Stock Options: Right to buy shares at specific price on or before maturity (typ. 10yrs). Vesting period exists. Causes dilution effect (existing shareholders have less % of shares). Share Appreciation Rights: Cash is given for change in value of an amount of shares between issue and future date. No shares actually i...
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This document was uploaded on 02/27/2014 for the course FINS 1613 at University of New South Wales.

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