A written agreement is set between a manager and employee promising the employee a fixed number of stock options if he or she meets a stated performance goal. That goal can be bringing in a certain level of new business, completing a critical contract on time and under budget, bringing in an important new customer, or preparing a winning proposal for an important contract. These agreements help employees understand what is expected of them and what goals are critical to the company. It is a powerful incentive tool. Having a management team with a significant investment in company stock helps align their interests with the company's strategic goals.
All employees are eligible to purchase stock at our quarterly trades.
Any employee who desires to purchase SAIC stock notifies his or her manager, who may decide to match the purchase with option shares if the employee is deserving. We conducted a study a few years back looking for a correlation between stock ownership and retention levels. A few years back we recognized a problem. We decided we needed to develop a program to retain these future leaders. During this period, hopefully, the stock increases significantly in value and the employee assumes a leadership role in the company.