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Chapter 4: Management: Performance > Yes, We have Good Examples

Yes, We have Good Examples

British advertising firm WPP is a rare example of “skin in the game” CEO compensation, where executives must invest their own money in shares, which will then be matched or not to the extent that a relative total shareholder return target is met. And the TSR must equal or exceed the median for any match. Compare this to Morgan Stanley's “Leveraged Coinvestment Program” in which execs were “allowed” to defer shares they had just “been given for free” as part of the annual bonus plan into a “fund of funds”. The company gives a two for one match (regardless of performance) and the participants receive all the investment returns on the whole amount though, at the end of the day, they will only receive their own deferred shares when the plan is....


  

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