The Advisors' Blog

– Lynn Jokela

Here’s a recent report from Willis Towers Watson showing trends over the last 10 years for S&P 500 companies on executive stock ownership guidelines and retention requirements.  The report shows that 63% of S&P 500 companies have both stock ownership guidelines and also retention requirements, while another 33% of the S&P 500 have stock ownership guidelines only.  The report says that the prevalence of retention requirements has increased 82% since 2010.

The report also shows trends in retention requirement design and says that although 52% of the S&P 500 companies have a retention requirement for executives to hold shares until ownership guidelines are met, some companies have either a stand-alone retention requirement or a requirement to hold shares beyond meeting the stock ownership requirement.