Performance shares

Shares of stock given to managers on the basis of performance as measured by earnings per share and similar criteria. A control device used by shareholders to tie management to the self-interest of shareholders. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Performance Shares — In the case of stock compensation, shares of company stock given to managers only if certain company wide performance criteria are met, such as earnings per share targets. The goal of performance shares is to tie managers to the interests of… …   Investment dictionary

  • performance shares — shares of stock paid out to managers only if the company makes certain sales, earnings per share, or other similar criteria. Bloomberg Financial Dictionary …   Financial and business terms

  • performance ratchet — Also known as equity ratchet. A common feature of private equity transactions, designed as an incentive for owner managers. The effect of the ratchet is to increase the amount of equity held by managers if certain performance targets are reached …   Law dictionary

  • performance share plan — (PSP) Sometimes known as a long term incentive plan or LTIP. A type of long term incentive in which participants are allocated shares or rights to shares, the vesting of which is subject to the satisfaction of performance targets typically… …   Law dictionary

  • Performance fee — A performance fee is a fee that an investment fund may be charged by the investment manager that manages its assets, calculated by reference to the increase in the fund s net asset value (or NAV ), which represents the value of the fund s… …   Wikipedia

  • Performance Drag — The negative effect of transaction costs on the performance of an investment. Performance drag is most commonly attributed to brokerage commissions, but there are many other factors such as timing, bid ask spreads and other opportunity costs that …   Investment dictionary

  • performance — /pə fɔ:məns/ noun 1. the way in which someone or something acts ● Last year saw a dip in the company’s performance. ♦ the poor performance of the shares on the stock market the fall in the share price on the stock market ♦ as a measure of the… …   Dictionary of banking and finance

  • performance fund — /pə fɔ:məns fʌnd/ noun a fund invested in shares to provide capital growth, but probably with less dividend income than usual …   Dictionary of banking and finance

  • performance share — /pə fɔ:məns ʃeə/ noun a share which is likely to show capital growth, though perhaps not income. These are usually riskier shares than those which provide income …   Dictionary of banking and finance

  • Escrowed Shares — Shares held in an escrow account and in most cases cannot be traded or transfered until certain circumstances like time horizon have been reached. The use of escrow for holding shares is often done during acquisitions and for performance based… …   Investment dictionary

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