Bill Pelo, Peloton's CEO, is retiring shortly, along with the board is enthusiastic to get the appropriate management team in position. Folsom is aware that some board members need a drastic change in Peloton's strategy to executive compensation and anticipates input from him. Peloton hasn't issued stock options .
Even though it is more so in the entire health care sector, in general, the practice is not common for medical manufacturing businesses. Folsom remembers his four years as CFO for Healthsource Home Care Inc. (HHC), a multihospital and long-term care system based in the Northwest. HHC had granted stock options as part of its executive compensation package, and Folsom had witnessed several negative changes in behavior as a result. He is eager to prevent similar issues at Peloton while, at the same time, encouraging the adoption of the appropriate alignment of incentives between the investors and also management he symbolizes.
Tad Folsom and Peloton Industries case study solution
PUBLICATION DATE: July 12, 2011 PRODUCT #: UV5232-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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