New Study by Equilar Examines Equity Trends in Executive Compensation
REDWOOD CITY, CA (May 2, 2013) – A recent study by Equilar, the leader in executive compensation benchmarking and governance research, found that executive compensation at U.S. companies continues to move away from stock options while placing a greater focus on granting full-value shares.
In its 2013 Equity Trends Report, Equilar reports that the percentage of S&P 1500 companies granting options decreased from 78.5 percent in 2007 to 75.2 percent in 2012, while companies granting restricted stock increased from 80.1 percent to 92 percent in the same period.
The restricted stock numbers represent an increase of 11.9 percent, while the median number of total stock options granted decreased to 578,000 in 2012.
“The 2013 proxy season marks the third year in which Say on Pay proposals will appear in the proxies of publicly-traded companies. Shareholders will make voting decisions regarding executive pay based on a variety of factors, including the mix of equity awarded to executives,” said Aaron Boyd, Director of Governance Research at Equilar. “Establishing a strong equity component in an executive’s pay provides a clear incentive to strive for long-term growth.”
Headquartered in Redwood City, Calif., Equilar is the leading provider of executive compensation data and governance tools for corporations, nonprofits, consulting firms, institutional investors, and the media. As the trusted data and executive solutions provider to 70% of the Fortune 500, Equilar helps companies accurately benchmark and track executive and board compensation, pay for performance results, and compensation practices. In addition, Equilar offers a leading business and event networking solution focused on serving executives and board members. Equilar’s research is cited regularly by Bloomberg, The New York Times, The Wall Street Journal, and other leading media outlets.