dividend equivalent right

Dividend Equivalent Right

In some employee stock options, the right of a shareholder to take more shares in the company for which he/she works in lieu of dividends on the shares he/she already holds.

dividend equivalent right

In incentive stock options, the right to a credit for additional shares for the value of dividends a firm pays on its shares.
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In connection with the declaration of the special dividend, the Board of Directors approved certain dividend equivalent rights, clarifying that holders of other Schiff equity awards, including stock options and certain restricted stock units, will receive dividend equivalents in the form of cash on each share underlying the stock options and restricted stock units.
In connection with the declaration of the special dividend, the Board of Directors approved certain dividend equivalent rights, allowing holders of other Schiff equity awards, including stock options and restricted stock units, to receive dividend equivalents in the form of cash on each share underlying the stock options and restricted stock units.
The decline in 2004 was attributable primarily to (a) the expense of stock awarded under the 2003 recognition and retention plan approved by the stockholders in August 2003 ($690,000, or $401,000 on an after tax basis), (b) the expensing of dividend equivalent rights resulting from the payment of a $0.
The Company issues stock options to employees, the majority of which have dividend equivalent rights.
The awards may be in the form of stock options, reload options, limited stock appreciation rights and/or dividend equivalent rights.
The Company anticipates that these top two employees will continue to be compensated primarily with stock option awards and related dividend equivalent rights and will continue to receive salary and bonus awards substantially below market-based rates as determined from a third-party analysis of compensation practices at comparable companies.