LeapComp - Sales Performance Management Blog

I came across this news release today: “AMDL, Inc. Completes Revision of Performance & Equity Incentive Compensation Plan”

I never heard about AMDL Inc. but lets see what they are doing to their incentive compensation plans. Ahh… “Under the terms of the Plan, AMDL has transitioned from a discretionary cash and options-based bonus plan to a performance-based, stock and cash incentive plan”. Sounds a lot like what I said here!

According to the press release, plan highlights include:

• Performance based incentive awards
• Board-determined quarterly income performance targets
• Limited cash bonus awards
• Reaffirmation of AMDL’s commitment to not issue discretionary incentive awards

But there’s more… “all stock granted to senior executives and employees as incentive compensation will be scheduled to vest only if the Company’s meets its strategic goals and specific financial performance targets”. I’m far from being an expert on executive compensation, but that also sounds like a pretty good idea.

Ok… there is nothing ground breaking in this article, but the point is that a lot of companies are following a similar approach, and they finally understand (hopefully) that incentive compensation needs to be tied to actual performance.