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Article: CFA advocate calls for scrutiny of restricted stock shares; Use of stock options is falling from favor, Schacht notes.(News)
- Article from:
- Investment News
- Article date:
- September 11, 2006
CopyrightCOPYRIGHT 2006 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Sara Hansard
Restricted shares of stock, which are replacing stock options as a tool for compensating executives, need greater regulatory scrutiny, an investor advocate told the Senate Banking Committee last week.
Although the use of stock options has fallen from favor due to new option-expensing rules, now there is a need for "further examination of the replacement for options, the practice of granting restricted stock,'' Kurt Schacht, New York-based executive director of the CFA Centre for Financial Market Integrity, testified.
The CFA Centre for Financial Market Integrity is the investor advocacy arm of the CFA Institute in ...