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Article: Changes afoot in restricted-stock grants to CEOs
- Article from:
- Chicago Sun-Times
- Article date:
- May 16, 2005
- Author:
CopyrightCopyright 2005 Chicago Sun-Times. (Hide copyright information)
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Shareholders enraged that CEOs are being granted restricted stock
on the basis of longevity should take heart that changes are under
way.
Experts in CEO pay say companies are increasingly tying restricted
stock to a CEO's performance. Here are the kinds of reforms they are
seeing in restricted-stock grants:
*Link the grants to a company's return on capital employed, which
shows growth in a firm's value.
*Tie the grants to economic value added.
*Set up a combination of goals, such as growth in earnings and ...