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Data on Stock Awards in S&P 1,500 Companies

In some companies, stock options are on the way out, and restricted stock awards are on the way in.

January 5, 2004
Related Topics: Variable Pay, Benefits

Equilar analyzed restricted stock grants provided to CEOs of S&P 1,500 companies from July 1 to November 30, 2003. The value of the restricted-stock grants was determined based on the closing stock price on the date of the transaction. The data was collected through Equilar’s AwardsInsight service.

    As a result of Sarbanes-Oxley, as of July 1, 2003 companies are now required to disclose new equity compensation grants made to Section 16 officers in Form 4 filings. The purpose of the analysis was to determine whether restricted stock was becoming a more prevalent method to deliver equity compensation to executives.

    Here are the findings:

  • 130 CEOs at S&P 1,500 companies received restricted stock grants of over 5,000 shares from July 1 to December 1, 2003. Equilar compared these values tits earlier 2002 study of restricted stock grants for S&P 1500 CEOs and saw a sharp increase in these values. One caveat is that the recent analysis looks at five months of data, as compared to the 2002 analysis which captured grants over a full twelve month period.
July-Dec., 2003 2002
Median value : $1,333,649  $812,000
25 percentile value: $427,312 $321,400
75 percentile value: $2,674,106  $2,015,125
  • For over 42 percent of the CEOs, this was their first restricted stock grant in the last four years. Here’s the frequency with which they have received grants of restricted stock in preceding years:
  Number of CEOs Percentage
None over the last three years 55 42.3 percent
Once in last three years 29 22.3 percent
Twice in last three years 18 13.8 percent
Each of last three years 28 21.5 percent
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