how to create barcode in vb.net 2010 NINE Building Healthy Employee-Employer Contracts in Software

Create ECC200 in Software NINE Building Healthy Employee-Employer Contracts

CHAPTER NINE Building Healthy Employee-Employer Contracts
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however. That s where the stock ownership piece comes in. Plus, we have an aggressive match for the 401(k) plan (and an employee stock purchase plan). It s hard to get people to put aside capital for the long term. We spend a lot of time encouraging people to participate. About half of employees participate in the stock purchase plan. Delves: You measure performance or success based upon dollar profits, customer satisfaction, community goals and the environment. How do you measure your success in all these areas Do you pay people based upon them or just for the profit achieved Hirshberg: We pay for all because we have to. To measure our environmental progress, we ve used outside environmental auditors. What that entails is the amount of waste going to the landfill. As for the electricity, water, and all the other resources, you measure them in your utility bills. We set goals and we have an environmental incentive that is part of everybody s participation in the profit-sharing plan. In terms of consumer satisfaction and revenues, especially, all senior managers get their bonus tied to a combination of revenue and EBIT (earnings before interest and taxes). In the case of the manufacturing plant, they don t get the profit-sharing plan, but a bunch of things that add up to the same. It would be safety, productivity, and consumer complaints. Delves: What incentive or programs have you offered to executives and top management Hirshberg: We have a time-accelerated restricted stock award plan (TARSAP), which is offered to the top one-third of the company middle, upper-middle, and senior managers, and of course myself that has been probably the most aggressive program that we have and that s where the great incentive has been. The TARSAP has been a more aggressive opportunity where the acceleration feature is tied to bona fide business objectives. We did accelerate the TARSAP (based on performance) so that everybody would be fully vested earlier. That was a neat breakthrough. It created a lot of wealth for longterm employees; it s paid for college educations; it s paid for new homes and very serious life savings. Delves: How have you used stock options Hirshberg: In the early going my partner and I had diluted ourselves down to a small percent of the company. (At the peak we had 297 investors). We had to do that to have the company survive. We were able to make the case to shareholders and they were big enough to
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accept it, that there would be very little motivation for us at that small percentage of ownership. So through the use of stock options, we and other senior managers were able to earn our way back up, not to our original positions but to a much stronger position. Delves: That s excellent. You used the option plan for yourself and other senior managers to earn your way back into the company. Hirshberg: We earned the options by performance. . . . Moreover we saw options as a tool not of compensation, which they ultimately are, but a tool of ownership and control. We believe that people need to have a figurative if not a literal sense of ownership to participate. In the case of many of my senior managers, I had to steal them away from a large company, and the options were seen as strictly compensatory. But on the other hand, they liked the fact that anything disclosed to shareholders would be disclosed to them. For many middle-level managers, it was the first and only stock ownership opportunity in their lives. It was a way to turn sweat into equity.
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