ADVISORY/Experts Available To Discuss Microsoft Decision To Offer Restricted Stock in Place of Stock Options.Business Editors ADVISORY... --(BUSINESS WIRE) TOPIC: Microsoft stated last week that it would offer restricted stock grants in employee pay packages in place of stock options, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. an article by the Los Angeles Times Los Angeles Times Morning daily newspaper. Established in 1881, it was purchased and incorporated in 1884 by Harrison Gray Otis (1837–1917) under The Times-Mirror Co. (the hyphen was later dropped from the name). . Compensation experts are encouraged that the company plans to link vesting of the restricted shares to performance targets. Some people have criticized stock options as benefiting corporate executives who are only concerned with quick bottom-line increases, the article says. EXPERTS: ExpertSource can offer several highly qualified experts to comment on this story: Chuck Pappalardo is Managing Director of Trilogy Venture Search, a retained executive recruiting firm headquartered in California's Silicon Valley. An 18-year veteran of the retained search industry, Chuck specializes in C-level searches and building executive management teams for venture, private equity, technology, life sciences, and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. clients. Chuck believes Microsoft's decision to award shares rather than grant options represents a critical shift in the culture of corporate compensation. Broadly speaking Adv. 1. broadly speaking - without regard to specific details or exceptions; "he interprets the law broadly" broadly, generally, loosely , stock option plans often serve to supplant the notion that an executive's purpose is to build great companies that contribute to the greater good, and implant the view that an executive's function is to build personal wealth. As recent controversies have demonstrated, stock options have been at the root of some exceedingly bad corporate behavior, from manipulating earnings to sheltering option income. Compensation and incentives are critical. But as Jim Collins notes in his book "Good to Great," no systematic patterns exist linking an executive's compensation to a company's ability to move from a good to a great organization. Basically, it's not how you compensate people but that you have the right people onboard to compensate in the first place. Microsoft's decision should not have a negative effect on the company's ability to attract and retain top executives. The new plan establishes a stronger link between pay and performance, and creates a healthier, more democratic corporate foundation. PR: Renay Weissberger Fanelli 415-457-7180 renay@wire-to-wire.com Dr. Mukesh Bajaj is the Managing Director of the Finance and Damages practice, a member of the Board of Directors and the Governing Board of LECG LECG Law and Economics Consulting Group LECG Laboratory of Ecological and Conservation Genetics . He also teaches Corporate Finance, Investments and Financial Engineering courses in the MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration and the Evening MBA and Masters in Financial Engineering programs at the Haas School of Business at the University of California at Berkeley (body, education) University of California at Berkeley - (UCB) See also Berzerkley, BSD. http://berkeley.edu/. Note to British and Commonwealth readers: that's /berk'lee/, not /bark'lee/ as in British Received Pronunciation. . He has managed a variety of consulting and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. support assignments in the areas of transfer pricing, valuation, commercial damages and securities fraud. His experience includes: transfer pricing; securities fraud; valuation of intellectual property, intangible assets, interests in closely held A phrase used to describe the ownership, management, and operation of a corporation by a small group of people. In a closely held corporation, the same people often act as shareholders, directors, and officers, and no outside investors exist. firms, warrants, restricted stock and other complex contingent securities and purchase price allocation studies. He has also consulted on financial strategy and acquisition analysis. 510-450-6736 Professor Jennifer N. Carpenter, of New York University New York University, mainly in New York City; coeducational; chartered 1831, opened 1832 as the Univ. of the City of New York, renamed 1896. It comprises 13 schools and colleges, maintaining 4 main centers (including the Medical Center) in the city, as well as the , is an expert on topics such as option compensation and executive stock options. 212-998-0352 ExpertSource cannot guarantee the immediate availability of these experts or their familiarity with this specific issue. ExpertSource provides academic and industry experts to the media at no charge. Journalists are encouraged to submit queries to ExpertSource when seeking experts on specific subjects. An online registration form is available at http://www.businesswire.com/. |
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