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Opt out: stock options aren't the only way to pay.(Smarts)
THREATENED REGULATION and shareholder disdain haven't stopped the flow of stock options into executive compensation plans. But a subtle shift is still underway to reposition stock options as just one part of a more traditional pay package.
This approach emphasizes compensation strategies such as pay-for-performance bonuses and restricted stock that tie financial rewards to individual and corporate success. Restricted stock, for one, slows the greed factor associated with options by staggering vesting periods and, in some cases, requiring employees to pay for the stock.
Unlike options, which don't cost employees anything until they are exercised, restricted stock makes employees more invested in long-term corporate performance. "Restricted stock starts with a value," says Bill Coleman, senior vice president of compensation at Salary.com in Wellesley, Massachusetts. "An option on its own isn't worth anything."
Compensating strategies also connect performance and an employee's financial interests if it's done right. Rewarding an executive with a cash bonus for a jump in new customers leaves ...
- DolmatConnell Study Finds Strong Incentives Boost Performance; High-Tech...
- Press release article from: Business Wire June 14, 2005 700+ words
...offering only stock options generally outperform...those offering restricted stock as a long...companies now offer restricted stock instead of stock options. Dolmat...shift from stock options to restricted stock and performance...
- Employee compensation: stock options versus restricted stock.
- Magazine article from: Commercial Lending Review Christian, Cal November 1, 2003 700+ words
...how these two stock compensation plans (stock options and restricted stock) affect the financial performance of...how these compensation methods work. Stock Options Plans and Restricted Stock Awards: An Overview The premise behind...
- CFA advocate calls for scrutiny of restricted stock shares; Use of stock...
- Magazine article from: Investment News September 11, 2006 700+ words
...advisers' clients receive stock options, and some of them report...are turning to issuing restricted stock in place of stock options (InvestmentNews, Aug...a movement away from stock options to restricted stock agrees that restricted...
- FairPoint Communications Announces Award of Stock Options and Restricted Stock...
- Press release article from: PR Newswire July 1, 2009 700+ words
...vesting of the stock options and the restricted stock is contingent...price of the stock options will be adjusted...additional shares of restricted stock will be awarded...value of the stock options and the restricted stock awarded on...
- Ditech Networks Grants Stock Options to Purchase 4,000 Shares and Grants 1,400...
- Press release article from: PR Newswire August 2, 2006 700+ words
...granted an aggregate of 1,400 restricted stock awards to two people who...Ditech Networks. All of the stock options have a term of ten years, and all of the stock options and restricted stock awards will vest over four...
- Exide Technologies Announces Grants of Restricted Stock and Stock Options.
- Press release article from: Business Wire April 1, 2005 700+ words
...approved the grant of restricted stock and stock options to Mr. Ulsh in connection...grants of the option and restricted stock discussed above are...will be granted other stock options and restricted stock under Exide's stock...
- New Social Security Treatment On Stock Options And Restricted Stock Units.
- News wire article from: Mondaq Business Briefing May 27, 2009 700+ words
...for two additional contributions on stock options and restricted stock units (RSUs). The first contribution...choice, its funding base equals: for stock options, either the value of the stock options as it appears in the company's consolidated...
- Ditech Networks Grants Stock Options to Purchase 37,500 Shares and Grants...
- Press release article from: PR Newswire September 21, 2006 700+ words
...an aggregate of 15,007 restricted stock awards, to nine people who...Ditech Networks. All of the stock options have a term of ten years, and all of the stock options and restricted stock awards will vest over four...
- SMSC Announces Stock Option Grants - Correction; Corrects Aggregate Number of...
- Press release article from: Business Wire May 5, 2006 700+ words
...Company, stock option and restricted stock grants covering an aggregate...correct aggregate number of stock options and restricted stock grants was 102,750 shares...inducement stock option and restricted stock grants was made in accordance...
- Compensation for new SGI CEO: RESTRICTED STOCK, OPTIONS ADDED TO BONUS, BASE...
- News wire article from: San Jose Mercury News (San Jose, CA) March 6, 2006 700+ words
...McKenna was also awarded 2.7 million shares of restricted stock, equal to 1 percent of the number of outstanding...an amount equal to the value of his vested stock options and restricted stock held or sold from May 2000 through May 15...
Source: HighBeam Research, Opt out: stock options aren't the only way to pay.(Smarts)