March 24, 2016
Study: Stock Ownership & Holding Guidelines
– Broc Romanek, CompensationStandards.com
Here’s the highlights from Equilar’s latest “Executive Stock Ownership Guidelines” report for the Fortune 100:
– 88% disclose ownership guidelines or holding requirements and 61% disclose both
– Most companies with ownership guidelines established accumulation periods, with 5 years being the most common
– 84% base ownership requirements on a multiple of base salary that varies by position, with 5x or 6x being the most common for CEOs
– Holding requirements most often require retention of company stock acquired through exercise of stock-based awards only until stock ownership guidelines are satisfied