Author: Dan Walter

Dan Walter (dwalter@performensation.com) is the President and CEO of Performensation an independent compensation consultant focused on the needs of small and mid-sized public and private companies. Dan’s unique perspective and expertise includes equity compensation, executive compensation, performance-based pay and talent management issues. Dan is a co-author of “The Decision Makers Guide to Equity Compensation”, “If I’d Only Know That”, “GEOnomics 2011” and “Equity Alternatives.” Dan is on the board of the National Center for Employee Ownership, a partner in the ShareComp virtual conferences and the founder of Equity Compensation Experts, a free networking group. Dan is frequently requested as a dynamic and humorous speaker covering compensation and motivation topics. Connect with him on LinkedIn or follow him on Twitter at @Performensation and @SayOnPay.

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Stock options won’t go the way of the Dodo Bird

Dan Walter, PerformensationAn August 27, 2013, there was an article in the Wall Street Journal titled “Last Gasp for Stock Options?” The writer, Emily Chasan, starts the article with this sentence: “Stock options are on the verge of extinction.” Since
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Equity Compensation – Are Stock Appreciation Rights the Right Tool for You?

Dan Walter, Performensation Stock Appreciation Rights (SARs) are a commonly misunderstood component of the equity compensation mix. This is probably because each of three distinct variations has been promoted as “the answer” at different times over the pa
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Executive Compensation Calendar – When Should You Work on Specific Projects?

Dan Walter, PerformensationIt’s that time of the year again. Proxy season is wrapping up. You are probably working at one of the 98% of public companies who passed their Say on Pay vote with flying colors. Or, you work at one of the 100% of private compani
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Executive Compensation Calendar – When Should You Work on Specific Projects?

Dan Walter, PerformensationIt’s that time of the year again. Proxy season is wrapping up. You are probably working at one of the 98% of public companies who passed their Say on Pay vote with flying colors. Or, you work at one of the 100% of private companie
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Equity Compensation – Performance Accelerated Units (PAUs), Old School Performance Equity

Dan Walter, PerformensationAs I mentioned in an earlier post, performance equity instruments still get lumped together like a bowl of mixed nuts. Of these instruments, Performance Accelerated Units (PAUs) are one of the easiest for participants to underst
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Real Pay, Realizable Pay, Pay Ratios and Reality

Dan Walter, Performensation Pay ratios are the most commonly used tool when discussing the unfairness between executive pay and that of the rank and file. Recently, on the PayScale Career News blog which caters to individuals managing their careers, there was
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Equity Compensation: Performance Earned Units (PEUs), The First Ingredient in a P4P Stew

Dan Walter, PerformensationAll too often the myriad types of truly performance-based equity get muddled together into a stew. Like other great equity compensation ingredients (RSS, RSU, ISO, NQSO) each type of performance equity should first be tried as a
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CFO Corner: Say on Pay Campaigning and the 97% Rule

Dan Walter, Performensation It’s proxy season and Say on Pay is once again on the minds of anyone involved in executive compensation. As of this past week, about 170 companies have reported their results and less than 2% have failed. When we are at the end o
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The Seven Deadly Sins of Executive Compensation

Dan Walter, Performensation Most of the problems with executive compensation tend to originate within a few categories. I have attempted to summarize these and look forward to the compensation community adding their take on this topic. Look at your past mista
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CFO Corner: What the Heck is Realizable Pay (and why you need to know…now)

Dan Walter, Performensation In the good old days, determining total compensation was fairly easy. Always wrong, but easy. For any given year you just added up what you paid people in base pay, what you expected to pay them in bonuses, other cash incentives, a
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CFO Corner – Non-Qualified Stock Options Are Much Better Than They Sound

Dan Walter, Performensation Non-Qualified Stock Options (NQSOs, NQs, NSOs) should really be called Stock Options. Non-qualified (or non-statutory) makes them sound negative. The negative modifier simply refers to the fact that these stock options have no spe
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CFO Corner: UK Shareholder Spring Was Barely a Fling

Dan Walter, Performensation In recent presentations I have heard several compensation professionals from the UK refer to their “Shareholder Spring” of 2012. The reference is to the raising of voices from shareholders. While we all love a little hyp
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CFO Corner: Equity Compensation – The Ups and Downs of ISOs

Incentive Stock Options are a great place to start talking about equity compensation. ISOs are “appreciation-only” vehicles, meaning they have direct value to employees only if the stock price appreciates above the initial grant price. Other common apprec
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CFO Corner: Beyond TSR (Total Shareholder Return)

Dan Walter, Performensation Executive Pay that Works for Shareholders and Companies Like Milli Vanilli in 1990, Total Shareholder Return (TSR) is currently all the rage in executive compensation plans. And, like Milli Vanilli, as entertaining as TSR is to so
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Cash Is King. Who Are the Rest of the Royals?

By Dan Walter, Performensation In the mighty kingdom of compensation, cash is king. Cash holds this majestic position through a family line that stretches back hundreds, if not thousands, of years. Like any monarch, King Cash has a retinue of supporters, all