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Article: A Popular Reward: Restricted Stock; Job Performance Link Is Debatable
- Article from:
- The Washington Post
- Article date:
- June 27, 2005
- Author:
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As stock options become costlier and more controversial for
companies, another form of executive compensation is gaining favor -
- and drawing criticism.
It's known as restricted stock, a grant of stock that generally
passes to an executive over a period of time.
The rise of restricted stock reflects the continuing effort to
align pay with performance -- or, according to some corporate
governance analysts, the continuing effort to avoid aligning them.
In a sense, restricted stock puts the executive in the same boat
as ordinary shareholders because its value rises or falls with the
share price.
But unlike stock options, which allow the recipient to purchase
shares at a fixed price, ...