Incentive Compensation and Employee Ownership [Paperback]

Scott S. Rodrick (Author)

Book Description

ISBN-10: 0926902547 | ISBN-13: 978-0926902541 | Publication Date: May 1, 1999

This book takes a broad look at how to use incentives, ranging from stock options to cash bonuses to gainsharing, to motivate and reward employees in dynamic companies that seek to create a more productive "ownership" culture. Using both technical discussions and case studies, it explores incentives both as self-sufficient tools and as complements to retirement-oriented plans such as employee stock ownership plans (ESOPs). Specific topics covered by individual chapters include stock incentives in entrepreneurial growth companies, how incentives fit into the "Great Game of Business," communicating short-term incentives to employees, performance-based stock options, gainsharing and the Scanlon plan, the incentive programs at employee-owned Science Applications International Corporation (SAIC), how to correctly design a cash incentive program, and more.

Editorial Reviews

From the Publisher

In today’s competitive business environment, more and more companies use incentive compensation to "communicate goals in the most effective way possible—by putting a bounty on them," as Jack Stack writes in chapter 3 of this book. However, such programs often fail to improve performance if the company does not design them properly, customize them for the company’s particular situation, and effectively communicate them to employees.

This book explains how to avoid these pitfalls. Using a variety of real-life examples, it describes how companies can use incentive plans, ranging from cash bonuses to stock options and other equity incentives, to motivate employees to achieve higher productivity while rewarding them for their efforts. The first part of the book is a series of essays on incentives and how to use them, while the second part provides case studies from companies that have put these plans into practice. Special attention is paid to the needs of companies in today’s business environment.

This book relates incentive plans to employee ownership (i.e., ownership of company stock by employees) in two ways. First, the incentive plan itself may use stock, in which case it frequently takes the form of a stock plan, such as a restricted stock plan, discussed in chapter 5. Second, the short-term rewards of incentive compensation can fill a gap left by a longer-term benefit such as an employee stock ownership plan (ESOP), as chapter 2 explains. --This text refers to an out of print or unavailable edition of this title.

From the Back Cover

In today's competitive business environment, more and more companies use incentive compensation to "communicate goals in the most effective way possible--by putting a bounty on them," as Jack Stack writes in chapter 3 of this book. However, such programs often fail to improve performance if the company does not design them properly, customize them for the company's particular situation, and effectively communicate them to employees.

This book explains how to avoid these pitfalls. Using a variety of real-life examples, it describes how companies can use incentive plans--ranging from cash bonuses to stock options and other equity incentives--to motivate employees to achieve higher productivity while rewarding them for their efforts. The first part of the book is a series of essays on incentives and how to use them, while the second part provides case studies from companies that have put these plans into practice. Special attention is paid to the needs of growing companies that use options and similar incentives.

This book relates incentive plans to employee ownership (i.e., ownership of company stock by employees) in two ways. First, the incentive plan itself may use stock, in which case it frequently takes the form of a stock option plan, such as performance-based options, which chapter 5 discusses. Second, the short-term rewards of incentive compensation can fill a gap left by a longer-term benefit such as an employee stock ownership plan (ESOP), as chapter 2 explains.

See all Editorial Reviews

Product Details

• Paperback: 200 pages
• Publisher: Natl Center for Employee Ownership (May 1, 1999)
• Language: English
• ISBN-10: 0926902547
• ISBN-13: 978-0926902541
• Product Dimensions: 9 x 6 x 0.6 inches
• Shipping Weight: 10.4 ounces
• Amazon Best Sellers Rank: #2,394,152 in Books (See Top 100 in Books)