As part of our commitment to align the efforts of our directors, officers and employees with shareholders, the Company issued approximately 167,000 in stock options and 25,000 restricted stock grants
in Q1, which resulted in the non-cash stock compensation charge in the period as noted above.
Last week's filings indicate that Morton received $884,544 in 2011 salary, restricted stock grants
of $166,100 and $64,071 in other compensation.
Unlike restricted stock grants
, RSUs have no voting rights and do not pay out dividends, although a company can choose to pay out dividend equivalent units.
We see that the value of restricted stock grants
has increased significantly over time, especially since 2003, whereas stock options dominated during the period of 1997 to 2002 (possibly due to the favorable accounting treatment for granting employee stock options at that time), then faded to some degree and stayed fairly constant at $600,000-700,000 in later years.
We examine stock and bond price reactions to CEOs' first stock option and/or restricted stock grants
that appear on ExecuComp.
Total compensation includes salary, bonus, option awards, restricted stock grants
, and other compensation, plus long-term incentive program awards, deferred compensation, and pension plan payments.
Total pay is the sum of cash pay--salary plus bonuses--and stock-based compensation, which includes restricted stock grants
, stock option grants, and money received from long-term incentive plans.
8 percent more in total pay (cash plus bonus and stock-based compensation that includes restricted stock grants
, stock option grants and long-term incentive pay) than did the CEOs of firms that did not have layoffs.
Using "performance share" or "performance unit" grants, he writes, can greatly reduce the variability of earnings when compared to a policy of stock option or restricted stock grants
recorded under the FASB's new expensing rule, FAS 123(R).
Similar-sized charges from restricted stock grants
can be expected going forward.
The total level of compensation actually rose 2 per cent over the past year as long-term benefits, in the form of share options and restricted stock grants
, more than offset the slump in bonuses.
nonqualified stock options, incentive stock options (ISOs), restricted stock grants
, stock appreciation rights (SARs) or performance share plans.