It is essential to keep accurate records of grants made to employees. The company should keep the originals of all Plan Agreements, the Plan Document and even the Summary.
This responsibility also includes the duty to accurately value awards periodically. The plan valuation formula should be interpreted and the new share price determined and validated by company officers.
Since many, if not most, plans issue new awards periodically (perhaps annually), a process for determining and approving such grants should be put in place. A responsible manager should oversee this duty and work with company leaders and the owners (or board) to re-initiate the grant process.
To learn why sharing value with those who drive growth is so critical to your pay strategy, download and read our report today!
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