Campus

How a company’s success is reflected in share-based salaries

According to a study launched by the HKP group there is a strong link between how well a company performs in its chosen line of business and pegging its salaries to the trend of its shares on the stock-exchange. This is particularly so when the highest possible number of staff members receive part of their long-term salary linked to the orientation of the share price on the stock exchange. This idea, extended to as many staff members as possible, tends to foster a share-oriented culture within the group and people begin to adopt an entrepreneurial approach. Many companies worldwide are moving towards this kind of approach and culture. Initiated n th USA, the trend is taking root in a multitude of other economic climates, Europe especially, and the experience accumulated with the so-called long-term incentive programmes is slowly becoming a guide for the development of the practice in a global market.