September 15, 2008
The Need for Hold-Til-Retirement Provisions
– Broc Romanek, CompensationStandards.com
In the September-October issue of The Corporate Executive – which was just mailed – the primary focus of the issue was on the need for companies to implement hold-til-retirement provisions for equity awards and how to pick what’s right for your company. With much help from Marc Trevino and Joseph Hearn of Sullivan & Cromwell, this issue contains a roadmap of the considerations you need to analyze when adopting these provisions.
In connection with this issue, we have updated our list of companies that we have identified as having hold ‘til retirement requirements and the total is now over 40 companies (thanks to Equilar for helping spot some new companies). In comparison, at least two-thirds of S&P companies have some form of traditional stock ownership guideline, whereby executives are required to acquire and retain a certain value of company stock (usually a multiple of salary).
Thanks to Marc and Joseph, we have posted a slew of new sample documents in our “Hold-Til-Retirement” Practice Area, including:
– Sample Reports to Shareholders Describing HTR Requirements
– Sample Proxy Disclosure of HTR Requirements
– Sample HTR Requirement Policies
– Sample Letters to Executives Announcing HTR Requirements
– Sample Agreements Incorporating HTR Requirements
In addition, we have posted a number of other illustrative documents courtesy of ExxonMobil.
The September-October issue of The Corporate Executive specifically includes articles on:
– “Hold ‘Til Retirement” Requirements for Equity Awards: How to Pick and Implement What’s Right for Your Company
– Forms of HTR Requirements
– Reasons to Adopt
– Addressing Potential Criticisms
– Ten Steps to Designing the Program That Is Right for You
– An Additional Comment on ExxonMobil’s Approach
– Proposed Regulations for Section 6039 Returns
– Proposed Regulations for ESPPs
– A Roadmap to Comply with the SEC’s New Regulation FD Guidance
Take advantage of a “Rest of ’08 for Free” no-risk trial to have this issue sent to you immediately.