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January 31, 2008

Analysis Shows CEOs Opting for More Options-Based Shares

An Equilar analysis of fourth-quarter filings with the Securities and Exchange Commission found that the total number of shares awarded to Fortune 500 chief executives was approximately 30.7 million, an 18.2 percent increase over the fourth quarter of 2006.

 

When compared to Q4 2006, the overall number of full-value shares granted to Fortune 500 chief executives in Q4 2007 fell by 10.2 percent. However, the overall number of option-based shares granted to chief executives increased by 18.2 percent, according to the most recent newsletter published by Equilar, a compensation benchmarking consultancy based in California.

 

From Q4 2006 to Q4 2007, the percentage of total shares awarded with performance-based vesting criteria increased from 8.2 percent to 14.7 percent.

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