ESG's Fiscal 2018 outlook excludes costs related to the spin-off of ESG, as well as a charge for the acceleration of the vesting of restricted stock grants
, which will result from the closing of the sale of KLX (KLXI) to Boeing (BA).
It included salaries, bonuses, restricted stock grants
, long-term incentive payouts and the value of stock options exercised in the last year.
Two widely used approaches base compensation estimates on expected values of stock options and restricted stock grants
. An alternative approach focuses on realized values, relying less heavily on blanket assumptions about some undisclosed aspects of CEO pay arrangements--information that is necessary to approximate the expected value of stock and option grants provided to chief executives.
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.
Display 18 Jane Leader: A Financial Snapshot Cash Compensation $1.5 Million Deferred Comp Plan $1 Million in Company Stock Company Stock $5.2 Million Restricted Stock Grants
$1.7 Million Stock Options $7.1 Million Diversified Account (60% Stocks/40% Bonds) $4.5 Million 401(k) Retirement Plan (60% Stocks/40% Bonds) $600,000 Spending is assumed to increase with inflation.
Restricted stock grants
give employees actual shares of stock that may be sold only after certain conditions have been met.
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.
* Restricted Stock Grants
: Two years ago, Home Depot resumed giving these grants to assistant store managers to promote employee's long term interests in the success of the company.
** 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.
The executives were awarded restricted stock grants
(RSG) plus cash bonuses that vest in one-third increments on the first, second, and third anniversaries of Jan.