October 14, 2009
Stock Option Winners and Losers: What to Do Now?
– Broc Romanek, CompensationStandards.com
One of the biggest concerns we have – and we imagine boards (and their advisors) caught in this spot also are worried as well – is that many companies reloaded on options and other incentive awards this past Spring when the stock market was at its depths. Now that we’ve seen a 58% market rebound in six months, how are those proxy disclosures gonna look to shareholders, journalists, regulators and the general public? Clearly, this windfall will not be due to long-term performance.
In his latest article, Bud Crystal provides some examples of what we might be seeing on a widespread basis. Definitely worth a read.
Those of you attending our upcoming “4th Annual Proxy Disclosure Conference” – either in San Francisco or by video webcast – will not only receive practical guidance about how to deal with drafting disclosures to try to rein in a potentially messy shareholders relations issue, you will also guidance from the companion conference – the “6th Annual Executive Compensation Conference” – about how to fix this problem. Register for the Conference now.