Aldus Corp. His decision to base selection on the candidates' track record, operating style and culture fit, avoided turtles on fence posts and fueled growth. Picture a casino in Las Vegas. Hundreds of gamblers stand at slot machines. Each is interested in only the machine he is playing. He has a stake in that machine.
Managers are no different.
The bigger their stake, the more they will stretch to capture the rewards. Unfortunately, most architects of post-deal incentive plans are preoccupied with funding formulas, eligibility criteria, delivery mechanisms, tax treatments and administrative requirements. The plans become Rube Goldberg-like contraptions that defy logic, frustrate managers and confuse participants. By aligning incentives with value-drivers in the deal, VTEL's Moeller forged an early focus on creating shareholder value creation in the merger with Compression Labs. Early communication of these incentives boosted focus, enthusiasm and support.