Optimizing Long-term Incentive Plans


Figure 26 Change in ranking of all companies, when the starting dates of the plan changes. This is only one simulation run of model 3



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Figure 26 Change in ranking of all companies, when the starting dates of the plan changes. This is only one simulation run of model 3.
Figure 27 shows the average over all simulations of final TSR values of all companies and the respective deviations. Notice that the average TSR values of the companies are closely positioned to each other. In spite of the chaotic picture it is still noticeable that the average deviation of the optimized companies is less compared to the normal situation. This model does not produce good results. This is caused by the close positions of each other, despite of the reduction in average deviation.



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