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Dear Workforce What’s The Thinking About Quarterly Payouts For Executives

September 7, 2011
Related Topics: Variable Pay, Dear Workforce
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Our company has a management incentive program that covers all executives. It is based on annual targets and the awards are paid annually, half in cash and half in phantom stock units. One of our senior executives is pushing to have this plan pay out quarterly, or overlay this plan with another one that pays out quarterly. My position is that executives need to focus on long-term success, and that an incentive plan for employees at that level should pay out no more often than annually. What are your thoughts on this?
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