Wall Street's Volatility Raises Incentive Plan Concerns

Law360, New York (October 16, 2008, 12:00 AM EDT) -- Wall Street's ongoing malaise is raising new concerns over whether the market's extreme volatility might radically complicate even the best-laid executive compensation plans, experts say.

A typical executive compensation package is made up of base salary, annual bonuses, stock options and other long-term incentives. And with the recent turmoil on Wall Street, dramatic stock-price swings are setting the stage for a host of hard questions surrounding executive compensation packages, particularly when it comes to valuing those long-term incentive plans.

“In the old days, say, six months...
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