What is a ‘Restricted Stock Unit – RSU’

May 21, 2018

Via investopedia.com  Article

“Restricted stock units (RSUs) are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time. RSUs give an employee interest in company stock but have no tangible value until vesting is complete. The restricted stock units are assigned a fair market value when they vest. Upon vesting, they are considered income, and a portion of the shares are withheld to pay income taxes. The employee receives the remaining shares and can sell them at their discretion.

BREAKING DOWN ‘Restricted Stock Unit – RSU’

For example, suppose Madeline receives a job offer. Because the company thinks Madeline’s skill set is valuable and hopes she remains a long-term employee, it offers her 1,000 RSUs as part of her compensation, in addition to a salary and benefits. The company’s stock is worth $10 per share, making the RSUs potentially worth an additional $10,000. To give Madeline an incentive to stay with the company and receive the 1,000 shares, it puts the RSUs on a five-year vesting schedule. After one year of employment, Madeline receives 200 shares; after two years, she receives another 200, and so on until she acquires all 1,000 shares at the end of the vesting period. Depending on how the company’s stock performs, Madeline may receive more or less than $10,000.

Advantages of Restricted Stock Units

RSUs give an employee an incentive to stay with a company long term and help it perform well so that their shares increase in value. If an employee decides to hold their shares until they receive the full vested allocation, and the company’s stock rises, they receive the capital gain, minus the value of the shares withheld for income taxes and the amount due in capital gains taxes. Administration costs are minimal for employers as there aren’t actual shares to track and record. RSUs also allow a company to defer issuing shares until the vesting schedule is complete, which helps delay the dilution of its shares.

Limitations of Restricted Stock Units

RSUs don’t provide dividends as actual shares are not allocated, however, an employer may pay dividend equivalents that can be moved into an escrow account to help offset withholding taxes, or reinvested through the purchase of additional shares. RSUs aren’t eligible for Internal Revenue Code (IRS) Section 83(b) Election, which allows an employee to pay tax before vesting, as the IRS doesn’t consider them tangible property. RSUs don’t have voting rights until actual shares get issued to an employee at vesting. If an employee leaves before the conclusion of their vesting schedule, they forfeit the remaining shares to the company. For instance, If John’s vesting schedule consists of 5000 RSUs over two years and he resigns after 12 months, he forfeits 2,500 RSUs.”

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The levels of listening Jedi trick

May 21, 2018

By Pascal Finette via read.theheretic.org  Article

“It’s really not that easy to listen well. We are easily distracted. We engage in selective listening, hearing only what we want to hear, our minds acting on a cognitive bias for consistency rather than truth. And that’s just the start.

This quote from Chris Voss’ excellent book ‘Never Split the Difference: Negotiating As If Your Life Depended On It‘ perfectly sums up the challenges we have with listening. Listening also happens to be one of the most important leadership skills — particularly in these exponential times where everything moves faster, and we need to process more information in ever shorter periods of time than ever before.

In coaching we distinguish between the three levels of listening: (1) Internal(you listen to the voice in your head), (2) Focused (you listen to the person interacting with you) and (3) Global (you tune into what’s going on in the room). Sadly we spend way too much time in level 1 — our own head.

Becoming aware in which level you are at any given moment and thus gaining the ability to consciously switch levels is an incredibly powerful tool.

Say, you find yourself in a meeting with your leadership team. Many of us will spend a considerable amount of time in our head; mulling things over, thinking about what to say next or how to react to something (or even thinking about stuff which has nothing to do with the content of the meeting at all). Being able to identify this level 1 listening behavior and consciously switching your listening to level 2 (for example when you are interacting with one member of the group) and level 3 (to suss out the ‘temperature/energy’ in the room) allows you to gain a much deeper understanding of what’s going on and drive to much better outcomes.”


Stolen ideas

May 21, 2018

By Seth Godin via thedominoproject.com  Article

“The paradox of non-fiction book publishing (and I’d stretch it to include popular fiction as well) has two components:

  1. Authors steal to write.
  2. And the writing they do gets stolen.

It’s easy to get up in arms about the second, but essential to embrace the first.

One can’t write without using the ideas, metaphors, styles, tropes, processes, concepts, examples and successes that came before. The writing would be incoherent, it wouldn’t resonate with anyone and failure would ensue.

It can’t be 100% original, but it often rhymes with what came before.

The converse of this, of course, is that if you do good work, the books and articles and conversations that follow will be inspired by (and stolen from) the work you do.

You won’t be acknowledged, and you’ll be quoted or misquoted. Or paraphrased.

If you’re successful.

If you’re not, you’ll discover that your work is merely invisible.

Here’s the cover for a book I did with Penguin about a decade ago, alongside the cover of a new book, yes, published by Penguin. I ran into the artist who did the work on my cover, and neither he nor I was informed. If I were him, having drawn all those little people with shadows, I’d be pretty annoyed. Giving him credit doesn’t hurt anyone.

Bad form aside, this is not only part of the deal, it’s the most important part of the deal. Culture is nothing but a sedimentary layering of ideas, each contributing to the next. That’s what we signed up for.

Steal and be stolen from. That’s how ideas work.”


Retirement Is dead

May 21, 2018

By Thomas Koulopoulos via inc.com  Article

It’s Time to Say It: Retirement Is Dead. This Is What Will Take Its Place

We get old when the weight of our memories and regrets starts to exceed that of our dreams.

When it to comes to the topic of retirement, the old rules no longer apply. In 1935, when the Social Security act was passed, the age of retirement was set at 65. At the time, the average life expectancy was 61! Today, average life expectancy is just under 80 years. That one fact speaks volumes to how outdated our views and mechanisms for retirement are. …

Advances in longevity are making supporting retirement for another 20 to 30 years impossible for 90 percent of all U.S. workers.

… The numbers are startling: Thirty-four percent of workers have no savings whatsoever; another 35 percent have less than $1,000; of the remaining 31 percent, less than half have more than $10,000. Among older workers between 50 and 55, the median savings is $8,000. And this is total savings, including retirement accounts.

Contrast that with the fact that experts say you should have eight times your preretirement annual salary saved in order to retire by 65 and continue a reasonable quality of life, commensurate with what you have become accustomed to.

The Retirement Myth

… Advances in longevity are making supporting retirement for another 20 to 30 years impossible for 90 percent of all U.S. workers, whose only source of income is Social Security, which only pays from an average of just over $1,300 per month to a max of just over $2,600 per month. …

Even if you’re lucky enough to be among the 20 percent, who have a $1 million-plus net worth and enough saved up to retire, there is some evidence that the classic notion of retirement may actually be harmful to your health.

The answer is absurd, and it’s at the core of every failed strategy to paint the future with the same worn-out brush we used to paint the past.

A recent Guardian article about research on aging and retirement cast an interesting light on the topic. According to the article,  ‘[Research conducted on] 2,956 people who were part of the Healthy Retirement Study funded by the National Institute on Aging in America … found that healthy retirees who worked a year longer (over the age of 65) had an 11 percent lower all-cause mortality risk. Even the unhealthy group reduced their likelihood of dying by 9 percent if they delayed retirement.’ An analysis on the study was also published in the Harvard Business Review.


A common vision

May 14, 2018

By Marcel Schwantes via flipboard.com  Article

A Young Steve Jobs Once Gave This Priceless Leadership Lesson

“With hundreds of leadership quotes by Jobs (some of which are falsely attributed to him) and video clips available with a quick Google search, Jobs nails ‘what leadership is’ in a few words. Here it is:

The greatest people are self-managing — they don’t need to be managed. Once they know what to do, they’ll go figure out how to do it. What they need is a common vision. And that’s what leadership is: [h]aving a vision; being able to articulate that so the people around you can understand it; and getting a consensus on a common vision.

Nice work, Steve, and I concur. In an age of knowledge workers, it’s imperative that we hire smart people, sure. But then, we must get the heck out of their way instead of managing them to death. To illustrate this with another classic Jobs quote, he once said: ‘It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.’

LEADERSHIP NEEDS A COMPELLING VISION TO WORK

That brings us to the second part of Jobs’ quote. Once you leave them alone, great leaders will cast a vision that gets people excited; communicate its purpose consistently and intently; and move the company forward by providing clear direction and focus so everyone is working together toward fulfilling that vision.

Leadership expert Ken Blanchard says, ‘A river without banks is a large puddle.’ The banks are what permit the river to flow in the right direction. And so it is with good leaders; they serve others by getting everyone to reach a common goal and ‘flowing’ in a consistent direction.

THE BOTTOM LINE

I’ll leave you with the clear difference between good leaders and mere bosses: In traditional, top-down hierarchies, bosses at the top of the food chain will lay out a vision, then use power, fear, and control to move people to carry out the vision. This ‘worker bee’ approach disengages and demotivates people from finding purpose in their work, and actually performing at a high level.

In today’s decentralized and inclusive work environments, good leaders will cast a compelling company vision and enroll their followers to express their voice as co-creators and co-contributors to the vision. As Jobs said, there’s consensus; people feel emotionally invested in the vision. This empowers and energizes people to freely collaborate and innovate above and beyond the basic requirements of the job. It’s what every leader should be after.”


Beliefs that no longer serve you

May 14, 2018

By  via aspire-cs.com  Article

Examine the beliefs that no longer serve you

“Because of who you are and how you’ve lived in the world, you carry beliefs with you that may or may not serve you in your leadership (and your life). It’s good to be aware of those and realize when they need to be held tightly or set free.

Your beliefs shape the kind of person and leader you are and the behaviors you exhibit. And how you show up (i.e., your behavior) either furthers your ability to develop relationships that make it possible to influence others or it makes it more difficult. When you can’t easily influence others, your work as a leader can be difficult.

The beliefs that you cling to that no longer serve can be the engine of a never-ending cycle of blaming others for your own inability to influence others and your organization forward. If you feel that others are the cause of your woes, ponder the following questions:

What are my beliefs about the people I lead? Honestly examine the beliefs you have about the people you lead, being careful that you don’t fall into the trap of deceiving yourself. Deception will only keep you where you are. Do you believe your followers are whole, smart, and full of possibility, or incapable or unable to do the work of your organization? Your answer will inform the next question.

How are my beliefs shaping my ability to lead? If you’re struggling in your ability to lead while blaming problems on others, then you aren’t really leading. If you believe your employees are incapable or otherwise unable to do the work that needs to be done, you might continue to see them as the source of all your troubles. You must be willing to look at yourself.

What new beliefs do I need to be open to? In other words, how might you turn your beliefs around? If you consider the opposite of the belief that “My employees aren’t capable, therefore they are negatively impacting my ability to further the mission of our organization”, the opposite belief might be “My employees have potential, and when I can coach them to tap into that, it will positively impact my leadership in furthering the mission of our organization”. The difference here is that you are stepping into leadership by taking responsibility for action.

What new behaviors might be possible now? Ah, you can now show your gifts to the world, and it is beginning to open! If you believe that your employees have potential, what does that mean for new ways for you to show up and interact with them? How might your new behaviors influence and impact others and your mission in a positive way?

You might realize through this process that what you’ve heard is true: you cannot change others, you can only change yourself (beginning with changing your beliefs about others).”


How to see opportunity everywhere you go

May 14, 2018

By Dan Rockwell via leadershipfreak.blog  Article

“The way you show up impacts what you see. Leaders who show up to fix things see problems and inadequacies. Leaders who show up to celebrate progress see strengths and opportunities.

What you bring into a situation impacts what you notice. The difference between stink and sweet is what you bring with you. The difference between stink and sweet is compassion.

Detachment:

Detachment is the opposite of compassion. Detachment defines problems as inconvenient frustrations.

Detachment says:

  1. What’s wrong with THEM?
  2. How did THEY screw up?
  3. What did THEY do?
  4. What did YOU screw up this time?
  5. I can’t fix everything. (The excuse for standing aloof.)

Show up with compassion:

Compassionate leaders see problems as opportunities. 92% of leaders believe compassion is important or extremely important. (The Mind of the Leader by Hougaard and Carter)

Compassion maintains positive intention in the face of negative circumstances. Compassion transforms problems into opportunities.

Compassion asks:

  1. How might we make this better?
  2. What problem might we solve?
  3. What do I have to offer?
  4. What do others need?

Compassion pursues the best interest of others.

How you show up determines where you end up.”