Is the Move Toward Restricted Stock in the Face of COVID-19 a Short Term or Long Term Play?
Posted by David Bixby on February 16, 2021 in Video
The move toward restricted stock may be a temporary response to near-term economic uncertainty. Though the long-term trend has been toward the use of more performance-based equity in long-term incentive plans, there are some who argue for simplifying executive pay programs.
The Council of Institutional Investors is one such group. They have advocated for using more time-vested restricted stock to simplify compensation programs and make it easier for shareholders to see what is going on inside a company.
In this video, David Bixby, Lead Consultant at Meridian, goes into more detail about the drawbacks of performance-based equity, particularly from an investor’s point of view.
For more information and insights into executive compensation programs, visit Meridian Compensation Partners at https://meridiancp.com.
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