Top 10 - The largest Stock Options Grants of 2009 - 15 Jul 2010

top-ten-largest-stock-option-grants-of-2009.html from thecorporatelibrary.com - StumbleUpon http://bit.ly/dibnIJ

 

July 15, 2010

Top Ten Largest Stock Option Grants of 2009

Earlier this week, The Corporate Library released “Starbucks’ Options Mega-Grant – Paying A CEO Millions Simply For A Market Rebound?” which served as an example of the type of analysis conducted for The Corporate Library's more expansive survey on the topic of large stock option grants. Picking up on our previous mega-grant research, we released this morning, “The Corporate Library's 2010 Mega-Grants Survey.”

Despite the fact that CEOs have been granted much more time-based restricted stock in recent years than ever before (serving as more of a sure thing compared to stock options which can lose all value when the stock price slips below exercise prices), there has also been an increase in the number of mega-grants being issued by compensation committees. Moreover, a decline in company stock prices at companies affected by the financial crisis led to some mammoth option grants in 2009. In some cases, CEO’s simply got more stock options to reach a desired grant date value when the company stock price declined. If a CEO makes millions on a market rebound, does this really align his interests with those of shareholders? We think not.

In addition to details on the top 10 highest stock option grants of 2009 at companies Sirius XM, MoneyGram, Oracle, Tenet Healthcare, Ford, Standard Pacific, Nabors, Move Inc, Sprint Nextel, and Starbucks, this report also offers clear solutions as to what can be done to avoid mega-grants that do little to incentive the CEO. There are a number of options available to compensation committees who truly set out to align management and shareholder interests.

The Corporate Library's 2010 Mega-Grants Survey is available for purchase in our online store.

Greg Ruel - Advisory Services Manager

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a01156ffc4aa5970b013485739f90970c

 

Post Reply

You must be logged in and a member of this Groupsite in order to post a reply to this topic.
To post a reply, contact your group manager(s) Join this Groupsite

 

ECE - Equity Compensation Experts
Powered by Groupsite.com

Visibility Public Membership By Invitation or Approved Request Default Profile Professional

Your Status Not Logged-In