The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

April 25, 2018

Equity Plan Share Reserves: How to Increase Life Expectancy

Broc Romanek

Here’s a teaser about this Hunton Andrews Kurth memo:

Efforts to conserve an equity plan’s share reserve should begin the day the issuer’s stockholders approve the plan (or share increase), and should continue going forward. Issuers that do not make such efforts tend to face problems relating to dwindling share reserves, including moving to cash-based programs, hiring proxy solicitation firms to garner stockholder support for share increases, and overcoming possible negative reactions from ISS.

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