Abstract
As the third in a series of four articles on the compensation implications of various corporate restructuring transactions, this article focuses on the issues, principles, and practices to consider when developing compensation plans for joint ventures and other strategic alliances. Such business structures have proliferated in recent years as organizations vie to remain competitive in the global and technological marketplace. This article explains what joint ventures and strategic alliances are and identifies business issues and compensation implications relevant to the compensation practitioner. The author further discusses several principles and practices to consider when designing a new compensation program for a large-scale equity alliance, including the treatment of outstanding parent-company awards, competitive benchmarking, annual compensation, long-term incentives, and benefits and perquisites.
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