Addressing these five topics over the next 12 weeks will provide a foundation for the new year. They will also provide the foundation for information to include in communications to shareholders as your company discusses successes and needs in the future. Most importantly, you will be ensuring your very limited equity compensation budget is being used as efficiently as possible.

Now is the time to fix your worst incentive plans, or adjust pay structures that have crumbled under the weight of furloughs, lay-offs, remote work, shrinkage, growth, or any other of the myriad of issues that are being faced in business. Yes, you are tired. But so are your competitors. The best time to win is when they can’t respond. In a world where increases have been in low single digits for a decade, it doesn’t take too much to set your company above the crowd.

Intentionally building stock options to take back what someone has earned through effort, time and investment is just a bad faith deal, in my humble opinion. Don’t use stock options if you are unwilling to commit to their commonly understood intent, and don’t buy your partner a gift because you really want to use it.

Companies are addressing talent acquisition challenges with better pay. Equity compensation vesting schedules may finally be changing. ESG (Environmental, Social, and Governance) goals are getting more than lip service. DEI (Diversity, Equity, and Inclusion) metrics are becoming what we thought they would be before COVID-19 began. And executives somehow continue to be paid well despite some less than stellar results. Here’s a quick round-up of what we’re seeing and what we aren’t.

World at Work defines Total Rewards as:

“All of the tools available to the employer that may be used to attract, motivate and retain employees. Total rewards include everything the employee perceives to be of value resulting from the employment relationship.”

We have invented more tools with corresponding rules, regulations, and variations. And our employees have become more diverse. Explaining the totality of Total Rewards has become increasingly difficult for many in and out of the world of compensation.