Relative Total Shareholder Rewards programs
are gaining favor in the marketplace.
Communicate company performance using
Radford's Relative TSR tools
PEERTRACKER - RADFORD'S PROPRIETARY REAL-TIME TRACKING TOOL FOR Relative TSR PLANS
Back to Relative TSR main page
Radford Testimonial
"The PeerTracker website is great! Anytime management wants to know where we stand on the current long-term incentive plan cycles, I can go to the website and give them real-time information."
Carla B. Works, CBP, CCP, Director of Compensation
Cleco Corporation
"Radford's PeerTracker is a unique product that creates efficiency in the management of Owens Corning's Relative TSR plans and visibility to company performance for our executives. Not only does the website track TSR accurately and real-time, it also provides a platform for explaining the metric to participants. This product is an incredible value."
Stacy Litka, Executive Compensation Leader
Owens Corning
"Radford's TSR resources and website have been extremely beneficial to Logitech. The best value has been the ability to pull real-time data on our performance against plan and share it with our Board as needed. The Radford TSR team has been very good to work with - responsive and precise."
Jasleen Dhir, Sr. WW Compensation & Benefits Manager
Logitech
"Radford created a much-needed state-of-the-art website that allows us to communicate the real-time status of our TSR-based Performance Share Plan to our leadership team, saving us significant internal cost and effort to provide similar information on an ad-hoc basis. We've tremendously benefitted from our partnership. I recommend Radford to all companies with a TSR-based plan."
Anil Agarwal, Director Compensation
The Home Depot
"We chose Radford Valuation Services for their innovative PeerTracker product that allows our Relative TSR grant holders to track their award. Terry and his staff work tirelessly to ensure our PeerTracker site is accurate and customized to our needs. Additionally, they provide the high-touch communication we needed to roll out our new award offering."
Sandra Sherman, Equity Compensation
Universal Technical Institute
PeerTracker
Incentive compensation programs effectively deliver the desired results of attraction, motivation and retention only when employees fully understand and appreciate their value. With traditional performance share awards, the participants often don't have a clear idea how they are tracking versus plan goals until the very end of the performance period. Such a black box approach to communications diminishes the incentive power of the award during the performance period. One of the great benefits of a Relative TSR performance award is that it is readily measurable at any point in time. This feature enables the company to communicate the plan's progress on an ongoing basis.
Radford has developed PeerTracker - a web-based desktop solution - to address both (1) the need for company tools to administer the program and (2) ongoing communication to participants to maximize incentive results.
Sample web sites
Links to sample web sites for four hypothetical companies are found below.
PeerTracker Sample #1
Company ABC
Relative TSR Percentile Rank Plan – The payout percentage is based on the company's TSR percentile rank.
PeerTracker Sample #2
Company XYZ
This includes an additional Performance Condition with the Relative TSR market condition. Note that Radford does not calculate Peformance Condition values; these must be supplied to us by the client on an ongoing basis.
PeerTracker Sample #3
Company ABC
Relative TSR Outperformance Plan – The payout percentage is based on the company's TSR outperformance versus an Index.
PeerTracker Sample #4
Company ABC
Market Stock Units Plan – The payout percentage is based on the company's
TSR only.
The solution serves five critical functions:
- Provides a direct line of sight between performance and reward
- Motivates employees to put forth their best efforts to drive stock appreciation comparatively against the company's
peer group - Supports human resources and finance functions through a resulting auditable calculation of the number of
awards earned - Provides necessary financial reporting calculations to support with developing the expected number of awards to vest (for calculating diluted EPS), and calculating dividend equivalents (if applicable), as needed on a quarterly basis
- Provides a final certification letter to be delivered to your Compensation Committee
To learn more about the tracking of your Relative TSR performance award, contact Jon Burg at jburg@radford.com or Terry Adamson at tadamson@radford.com.
