As published in Boardmember.com Insights e-newsletter

Compensation Committee Approval of Annual Stock-Based Incentive Awards - Key Considerations & Process Steps

Managing Director Steven Van Putten presents a multi-step framework for the Compensation Committee and management to use in making the most effective use of stock-based awards. The process is focused on:

1. Discussion of Internal and External Perspectives: The starting point for developing a long-term incentive strategy
2. Approval of long-term incentive strategy: Decisions about participation and stock incentive use go to the heart of the LTI strategy
3. Approval of the aggregate share pool: A pool for annual, merit-based awards and, typically, a separate share pool for new hire and promotional awards as needed
4. Approval of share award guidelines: Breaking the aggregate share pool into target grant values by organization level
5. Approval of actual awards: A relative formality, absent significant share price volatility

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