Essay On Employment Agreement
The deserving employees are also eligible to participate in the Company’s 1991 Officers Stock Purchase and Loan Plan. The benefit of this plan is that the employees are offered to purchase a specified number of shares of the common stock. According to the company’s employment agreement, “ The shares shall be granted at the closing sale price of common stock of the Company on the New York Stock Exchange” (p. 3, 2008) Apart from the above, mentioned benefits, there are regular benefits in the form of specific benefit plans meant for different units of the company, travel and entertainment expenses and automobile allowance.
Retention Strategies of URDT The company tries to highlight its growth opportunities, competitive strengths, shareholder value and high performance levels through its press releases and its website. The right people get interested in the company this way. Retention depends on the work environment the company is providing. In URDT the staff is retained through the attractive benefits plans and pay scales. When salary and compensations are according to the industry standards there is bound to be a good team of staff at the behest of URDT. The company ensures:
Recognition of employees’ performance Promoting their professional advancement Growth in their knowledge levels Salary and other benefits in accordance to the industry norms Employee involvement on important issues Prioritization of employee well being Considering them the company’s most valuable assets Fair play during recruitments Employee friendly terms and conditions Equality to all More specifically, according to the DEF, 14 A SEC Filing filed by UDTR: “• The board of directors has adopted a Code of Business Conduct and Ethics that applies to all of our directors, officers and employees;…
• We have a hotline available to all employees, and our Audit Committee has procedures in place for the anonymous submission of any employee complaint, including those relating to accounting, internal controls, or auditing matters. ”(2005, p. 4) Thus listening to employees’ complainants, taking necessary actions based on their complaints, giving credits to them for their performance and keeping equal set of principles for everyone are the strategies that UDRT adopts for employee retention. Performance Management at URDT
All the rewards in the company are based on the performance level of the employees. The performance is determined on the basis of the scales of performance measurement set by the board members. For example in the case of SVP award, the committee members who are in charge of this scheme calculate payout matrix by the method of determining the performance level by equating it to the unit value of the performance period. Where the efforts and hard work of high performers are rewarded and recognized, the poor performers are penalized.
The penalty can also lead to termination of duty on the ground of incapacity. In the joining agreement of UDRT, it has been specifically mentioned that “This Agreement may be terminated by the Company, by delivery of a “Notice of Termination” (defined in Section 8) to the Executive or his personal representative given at least thirty (30) days prior to the effective date specified therein, in the event that the Executive shall be unable to perform his duties hereunder for a period of more than three consecutive months as a result of illness or incapacity” (EDGAR Online, Inc 2008, para. 11)