The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

May 8, 2017

Share Utilization Declines: Full-Value Awards Increase

Broc Romanek

Here’s the key findings from this study of share utilization by Willis Towers Watson:

– A continuing trend of reduced run rate overall, although there is some growth among companies with the highest run rates
– A continuing increase in the fair value of LTI awards (e.g., the typical S&P 1500 company awarded $23.1 million in LTIs in 2015, up from a median of $17.5 million two years ago), even as share usage has declined
– Growing use of full-value (time- or performance-lapsing) shares, while the use of stock options continues to wane.