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For the month of October, our feature articles focus on stock ownership policies for executives and non-employee directors at Fortune 250 companies. Ownership policies, which include holding requirements and ownership guidelines, are commonplace on many "good governance" checklists and have grown in prevalence in each of the last four years. Although ownership policies are now widespread and not a new phenomenon they remain an interesting topic. This is due to their diverse design and increasing complexity. So long as investors and Board members continue to attempt to fortify the links between pay and performance, stock ownership policies will remain an important ingredient in compensation policies.

Feature Articles

Executive Stock Ownership Policies
Ownership Guidelines & Holding Requirements at Fortune 250 Companies

Equilar's new report on stock ownership requirements for Fortune 250 executive officers reveals the following key findings:

• The prevalence of Fortune 250 companies with publicly disclosed executive stock ownership policies increased from 80.9 percent in 2006 to 82.6 percent in 2007.
• For Fortune 250 companies with ownership guidelines, most choose to define ownership targets as a multiple of base salary. In 2007, 79.8 percent set their targets in this fashion.

Director Stock Ownership Policies
Ownership Guidelines & Holding Requirements at Fortune 250 Companies

Equilar's latest analysis of stock ownership requirements for Fortune 250 non-employee directors reveals the following key findings:

• The prevalence of Fortune 250 companies with publicly disclosed non-employee director stock ownership policies increased from 77.6 percent in 2006 to 78.9 percent in 2007.
• Often, ownership guidelines and holding requirements can be used in tandem to promote equity ownership. Among the Fortune 250, the prevalence of companies with both types of policies for non-employee directors increased from 12.8 percent in 2006 to 16.2 percent in 2007.

Equilar in the News

Research and commentary from Equilar appeared in several articles in September. To read more about the latest in compensation news, click on the links below. For a complete list of articles featuring Equilar research, visit the news and publications section of our website.

CEO Pay Takes a Hit in Bailout Plan September 28, 2008
"Departed financial chieftains at some of the firms caught in the mortgage meltdown didn't have to wait for golden parachutes to collect eye-bulging compensation, says Equilar, a compensation-consulting firm."
Curbs on Pay Advance in Bailout Plan September 26, 2008
"Severance provisions are a common feature of executive-employment contracts. A 2007 study of 137 large companies by data-tracker Equilar Inc. found 71.5% of CEOs had severance agreements, valued at a median $21 million, including cash severance, equity grants and various benefits."
Top Executives at Bruised Firms Among 's Highest Paid September 24, 2008
"'It goes against the grain of the culture of the industry where people expect to work hard and take risks and get rewarded through pay for that hard work,' said Alexander Cwirko-Godycki, research manager for executive compensation research firm Equilar."
The 25 Highest-paid Women September 24, 2008
"Which corporate women raked it in - and how much did they earn? Equilar Inc., an executive compensation research firm in Redwood Shores, Calif., prepared the chart by looking at companies with more than $1 billion in revenues that filed proxies by Aug. 15."
The Shareholders at the Top September 21, 2008
"They rode their shares to great heights during the glory days, and many of them just had a very hard fall. Below are the values of selected chief executives' stock ownership (not including options), in most cases at the beginning of 2007 and on Friday. Figures are provided by Equilar, a compensation research firm."
Interested in more media mentions from September? Click here.