The performance management team determines the performance goals at the beginning of a specific period. The rewards of employees are calculated on the basis of the following: Achievement of a set target, equity or assets or target growth Stock price of UDRT Total stockholder return in accordance to the set target over a specific period of time Growth in revenues, earnings per share or net income Exemplary achievement of an employee, a team of employees or a particular division of the company.
Achievement of targets set in the area of product quality, product delivery, and service provided to the customers Increase in the level of meeting budgets, customer satisfaction, employee retention Combination of the above situation If set goals are not met, the performance management team or the goal setting committee of the company reduces the predetermined awards. In severe circumstances when the performance level is below average then the awards are not granted at all. The employees are made aware of this stringent measure in written so that there is no confusion and misunderstanding later.
According to United States Securities And Exchange Commission, In URDT, “Performance units also can be considered non-qualified deferred compensation and subject to the new Section 409A of the Code. A grant of performance units that does not meet the requirements of Code Section 409A will result in an additional 20% tax obligation, plus penalties and interest to such participant. Currently, how the additional tax, penalties and interest will be applied is unclear. ” (Schedule 14 Information, p. 34) To extract high performance level the senior management ensures a healthy work environment so that each employee is able to deliver his best.
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The performance management team has in-depth insight of their customers and competitors. This goes a long way in extracting the desired performance from the entire employee force as they are in a position to focus their efforts in the right direction. Therefore to excel in performance management the senior management ensures that the employees know what their duties are. The efforts of the entire work force are then channelized so that a common goal is achieved. According to personal communication with Ms. Katie Miles-Lee a staff of URDT, the company is always trying to motivate people.
However she feels that the reward / recognition plan needs to be improved. There should be different types of programs for different departments like, on the spot cash, gift cards, pins etc. She further informed that programs related to performance management are conducted once a year and there are separate bonus programs at the company, divisional and personal levels.
- EDGAR Online Inc. “Employment Agreement” 2008. 24 July 2008. <http://sec. edgar-online. com/2000/03/28/16/0000898430-00-000962/ Section32. asp> EDGAR Online Inc. “Shareholder Value Plan” 2008. 24 July 2008.
- < http://sec. edgar-online. com/2000/03/28/16/0000898430-00-000962/Section29. asp> Fran Finnegan & Company. “Employment Agreement” 2008. 25 July 2008. <http://www. secinfo. com/drV5e. 8ad. 8. htm> UDR Inc. “Press Release” 2008. 24 July 2008. < http://www. snl. com/irweblinkx/file. aspx? IID=103025&FID=6183048>
- United Dominion Reality Trust. “DEF 14A SEC Filing” 2005. 25 July 2008. <http://sec. edgar-online. com/2005/03/28/0000950134-05-006134/Section2. asp> United States Securities And Exchange Commission. “Schedule 14 A Information” 2008. 25 July 2008. < http://www. secinfo. com/dvjdn. v7v. htm>
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