Research on Restricted Stock/RSU grant growth

I've also noticed the shift to broad based restricted share programs so we're focusing more content and analytics on managing these grants.  Here's an article on maximizing their value: http://blog.stockopter.com/2013/06/restricted-stock-maximizing-the-value-and-asking-the-right-questions/

Bruce and Bill:

Restricted shares give short grantee/shareholder alignment because at vesting (perhaps 3 years after grant), most of the stock is sold to pay taxes and "diversify".

The cash flows generated to the company are smaller with RSs than with ESOs and the actual costs of restricted shares to the company are generally higher. And Restricted Stock is not a performance grant, as illustrated by Apple's change of Tim Cook's restricted stock in the article linked below:

http://www.forbes.com/sites/timworstall/2013/06/22/the-fascinating-part-of-the-changes-to-tim-cooks-restricted-apple-stock/

ESOs have their structural problems as "time value" forfeiture precludes efficient risk management of ESOs, unless the grantee/holders wish to sell calls of buy puts.

If the forfeiture of the "time value" is eliminated by returning the remaining "time value" back to the grantee upon exercise in the form of new ESOs, all of the shortcomings of RSs and traditional ESOs are eliminated.

See the link below:

http://www.slideshare.net/OLAslideshare/comparisonof-3-forms-of-equity-compensation-2

John Olagues

olagues@gmail.com

Thanks for your thoughts. See http://bit.ly/139qiUf for articles and resources about this shift in the restricted stock section on myStockOptions.com.