I'm trying to understand when and why a company would implement a PSU plan (perhaps instead of or on top of Option plans and RSU plans). I get the basics of how PSUs work, but I don't understand them well enough to know when and why a company will choose to implement a Plan, and thus I don't know how to interpret this dimension of company analysis. I tend to believe that because this is one of the more esoteric forms of stock-influenced compensation that using PSUs indicates a financially savvy company, but that's an incredibly superficial way to view things.
Generally speaking corporate goals are to tie compensation as closely as possible to employee performance that, in turn, drives value. Thus everyone is "rowing in the same direction" and employees can genuinely feel like they have an impact on their own compensation.
Does the existence of a PSUP have any bright line indications (to make up an example "PSUP are always better than RSUs for the employee in the case of volatile stock prices because they normalize out price and allow for multipliers, thus PSUP is an indicator of a company that pays its employees well.")?
I believe I'm asking in the right place because my net goal is to understand how this influences my view of the company, however, if there's a better place for me to ask let me know and I'll post over there. Thanks!
Submitted April 21, 2017 at 08:28PM by rberdudiint http://ift.tt/2odI6ip
