January 4, 2017
Stock Grants Trending Down at S&P 500
– John Jenkins
This Equilar study says that stock grants are declining among the S&P 500. Here are some of the key findings:
– The average number of shares granted at S&P 500 companies overall declined during the past five years.
– Just over 80% of S&P 500 companies granted performance equity to their executives and about 65% granted options in 2015, the reverse of what held in 2011.
– Approximately 80% of companies in the technology sector granted performance equity in 2015, the lowest prevalence of any sector, while about 90% of the utilities sector granted performance equity, the highest.
– Total dilution overhang from stock options and restricted stock declined from approximately 5.2% in 2011 to 2.9% at the median in 2015. The decline was almost entirely attributable to waning stock option overhang.