Executive compensation packages can be structured entirely in stock and divided into multiple tranches where each tranche vests only if paired performance criteria—such as achieving specified company market-capitalization thresholds and meeting earnings or product-specific sales targets—are satisfied.
November 06, 2025
high
corporate
Describes a common structure for performance-based equity compensation for senior executives.
Market capitalization is the total value of a company's outstanding shares and is commonly used as a benchmark to compare company valuations and to set quantitative targets in corporate performance plans.
November 06, 2025
high
definition
Defines a valuation metric often referenced in corporate finance and executive pay schemes.
Executive compensation packages can be structured to vest based on operational or market milestones (for example, reaching a specified market capitalization) and can award additional equity that increases an executive's ownership stake.
November 06, 2025
high
structural
Describes common structures used in long-term executive incentive plans.
Executive compensation packages are often structured as performance-based restricted stock awards that tie pay to specific financial and operational milestones such as market capitalization targets, unit delivery targets, production of autonomous vehicles, and manufacturing output of new product lines.
high
corporate_governance
Describes a common structure and types of performance milestones used in large executive pay plans.