Reflexite Corporation made plastic film and other products are designed to focus the reflected light. The company recently changed its strategy to enable new applications in the broader market. In March 2007, the organizational structure and compensation system, which has successfully managed the company until that time had been under fire. Michael Foley, CEO of Reflexite Corporation had to decide whether to continue with the change employee ownership plan shares. Management and staff have held two rounds of "town meetings" to discuss the change in the distribution formula to determine how many employees will receive stock. Their recommendation was to change to allocate stock based on corporate performance. Previously, the company on the basis of allocation for the business unit performance, resulting in large differences in the number of employees have in stock. While optional "town meeting" vote in favor of the change by a wide margin, the chairman of the board was adamant in his opposition. Foley, still in his first year as CEO of wondering officers said, but when the person who built the company objected strongly, should not listen to "Hide
? by David W. Rosenthal Source: North American Case Research Association (NACRA) 19 pages. Publication Date: January 15, 2008. Prod. #: NA0056-PDF-ENG
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