In addition to all this, one should discuss the prevailing set of rules for board of directors such as what should be the annual vesting rate, how can the organizational change be managed effectively, what types of compensations e.g. monetary or non-monetary needs to be rewarded, and on how to seize the current opportunities to invest in financing structures.
i) At the meeting
At the meeting, it is important for the independent director to discuss openly the reasons of selecting Jennifer Smith as a replacement of Maurice Gagnon. Despite of the fact that she possesses relevant strategy implementing skills that will help the to organization prosper, still one should keep in mind that earlier Jennifer Smith was suspended for three years that has distorted her credibility at large. Therefore, the company’s employees will not accept her decisions and will not trust her abilities in making Global Tech to achieve its full potential. The company should focus on giving longer grants rather than giving annual grants, which is a de-motivating factor. Today board members receive approximately one to two percent of the stock options. It is seen that the longer the grants are provided; the more board members incentives will be aligned with all shareholders, which will help them to get options at a low strike price and presumably efforts will be directed in a way that will increase value of the stock by lowering dilution of the future financing. For this very purpose, the company needs to align these options with the talent pool that Global Tech has generated and must be in coherence with the employee’s salary base (Crawford, 2007).
For the purpose of effectively implementing mergers with and acquisitions of competitors, Global Tech needs to follow a strategy of single prompt stepping up on change management and control issues. This technique is the widely used tool when one talks about venture financing and helps the company in implementing a cost effective strategy for mergers and acquisitions. The independent member of the board should devise the people in authoritative positions of the benefits by using the tool in a highly competitive environment. In addition to this, an illustration of how this tool helps companies like Global Tech in organizational restructuring will help to foster the idea even more. The independent member should also discuss in detail and in-depth on the future prospects and budgetary constraints mentioned in the drafts or proposals of mergers and acquisitions. As the poaching issue is common in this industry and all other industries around; therefore, the venture financing in case of Global Tech needs to be assessed logically and rationally. The single prompt technique is applicable to companies, who are unable to retain its board members and don’t hold a 100% retention rate after the merger and acquisition strategy has been implemented. By managing the organizational change conflict among employees, the merger and acquisition incentive can be successfully implemented.
In the end, stock options grants given to the new replacements are not fair enough with respect to their multi-level designations and tasks. As the new replacements and promoted employees are committing to more than one highly authoritative role in the company e.g. a Chairman and a CEO or an active member of the management team too *Note, that board members and management personnel have widely differing roles, responsibilities and differing set of minds*, then they should be getting an additional equity grant apart from the board grant. When the board member doesn’t only act as a board member but also holds responsibilities as a CEO or a Chairman etc., only then they are allowed to ask for extra compensation. This gives the board members ownership in the corporation, which then ultimately motivate them to take decision in favor of the organizational benefit rather than for serving their own self-interest (Tricker, 2009)..........................
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