IndustryWeek : How to Avoid Employee Poaching

IndustryWeek : How to Avoid Employee Poaching: "Third, the plan should tie the key management team to the business; in this way regardless of who owns the company, these individuals have an incentive to remain. Payments of these incentive plan awards to the key employees are not immediate. There should always be some type of vesting schedule associated with any incentive plan award. Normally, a continual or "rolling vesting" schedule is used; this approach requires each year's award to vest on a separate schedule. Employing this type of schedule will tie the key employees to the business longer as they are never fully vested in the most recent awards.
Fourth, the key employees should receive the incentive award based on performance standards that when attained increases the value of the business; this element is critical to a properly designed incentive plan."

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