The municipal utility board wants "something like stock options" for the general manager, but state law bars equity grants. What should the CHRO recommend as the long-term tool?
Select an answer to reveal the explanation.
Short Explanation
Cities cannot hand out stock, but they can still hand out a reason to stay. Think multi-year deferred money with strings, not a fake IPO. Copying Wall Street paper in a public utility is how a city gets a headline, not a retention tool.
Full Explanation
SPHR 4.2 includes equity and executive compensation; public employers must translate those tools into lawful devices. Multi-year retention bonuses and deferred compensation can create a long-term hold without granting an ownership interest the city cannot legally create. Phantom equity without counsel, or a one-time unrestricted cash dump, either invites ultra vires risk or fails to bind the executive. Refusing any long-term tool is a strategy abdication.