Generally, an equity stock is issued at a par value of $1 and the market adjusts this number based on the amount of value created by the issuing company. Things that add value include profits, intellectual property, inventions, goodwill, products and inflation.
Not long ago, I posted a blog on understanding our individual handling fee (the cost of having you on a team). Upon more thought, there is more to this theme. If all leaders start a new position with a par value of $1, then our immediate goal is to increase that number. Over time, it is very possible that our par value can drop. As we transfer our skills and knowledge to our team, implement documented processes, deploy performance metrics and recruit great talent, our personal value decreases. We are no longer needed as much. Once our handling fee is known, this too is subcontracted from your par value.
We increase our value by taking on additional responsibility and assignments, learning new skills, familiarizing ourselves with products and markets, gaining additional degrees and certifications, exporting talent into the organization and building strong peer relationships. We all need to know our value proposition and its relationship to our handling fee and par value.
What is you value proposition? Is it increasing or decreasing? Are you taking action? Do you care?