McLoughlin is being paid a base salary of more than $1 million and received a shockingly high $3 million
restricted stock grant, which vests in full when a successor CEO is appointed (or, if earlier, 12 months from the date of the grant).
Executives and board members often acquire shares through various equity compensation mechanisms, including option exercises, stock purchases under an employee stock purchase plan,
restricted stock grant and settlement of restricted stock units.
In addition, on the first eligible restricted stock granting date after the date of the company's Annual Meeting of Stockholders each year, each non-employee director, provided that he or she has served on the board for at least one year, and if he or she continues to serve as a member of the board, will receive an automatic annual
restricted stock grant for the number of shares with a market value equal to USD160,000.
In this case, the
restricted stock grant would he exempt from Section 162(m) even if the stock ultimately vests after the end of the reliance period.
For the
restricted stock grant, we assumed that shares were sold to pay taxes as it vested, but the remaining shares were held for the duration of the 10-year period.
It might be possible for a CEO receiving a new option and/or
restricted stock grant to alter or even undo the delta and vega incentives of the grant by decreasing any pre-grant holdings of the firm's stock.
The
restricted stock grant was filed with the SEC ...
The
restricted stock grant will vest 8.33% each three months after the grant date of 4 November 2011, over a period of three years.
The variables of flow compensation, which reflect a firm's compensation structure adjustment, are defined as the fraction of
restricted stock grant or stock option grant over the CEO's total current compensation for that year.
Under the new agreement, Smith received a
restricted stock grant of 26,246.7 shares of stock, scheduled to vest on Aug.
For example, if you received a
restricted stock grant at $50 per share and it didn't vest until the shares were trading at $70, you would be subject to income tax on the $70 price.
Further, the
restricted stock grant will vest 25% on 31 January 2012 and 25% on each one year anniversary thereafter.
