Performance Shares: The High-Stakes Side of Your Equity Package
Performance shares are company shares you earn only if certain performance goals are met over a defined period, typically 3 years. Those goals might be financial, such as revenue or earnings per share, or market-based, such as total shareholder return relative to peers. Here’s how a basic grant might look in a performance share plan: You receive 1,000 performance shares as a target award. The company sets a three-year performance period. At the end, depending on results, you might receive 0–200% of that target (0 to 2,000 shares). Unlike a simple bonus, your payout is tied to both company performance and stock performance. If the business thrives and the share price rises, your performance shares can become a meaningful wealth event. If the company underperforms, it can be worth nothing. For more Details Read Full Blog