Performance milestones
The units will be subject to certain performance milestones and continued service requirements. All or a portion of the units shall vest based on the level of achievement of the revenue milestone set forth below:
0 per cent of the units, which are awarded, shall vest up on achievement of 2012 revenue of less than $7,243,000,000
50 per cent on achieving revenue of $7,243,000,000
100 per cent on achieving $7,525,000,000 and
200 per cent on achieving $8,087,500,000.
Source: Business Line, Dec. 1, 2011
2 comments:
Is it not feasible to use the concept of gain sharing or profit sharing through out the organisation!
Engagement has no generalized priciples either! Compensation objectives of the organization must match with those of the individual.
Organizations like Axis Bank that tried to generalize ESOPs across organization have burnt their fingers.
Couldn't agree with you any less.
However the Cognizant story is interesting from two perspectives:
a) Talent engagement.
b) Performance-based talent engagement.
Cheers,
Debashish
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