Those counting on a boost to their
income from stock options and were concerned about possible changes and caps on stock option gains need not worry.
The Compensation Committee reduced the aggregate number of shares subject to the stock option grants to each of Ms. Catz and Mr. Hurd
from a stock option for 5 million shares in fiscal 2014 to a stock option for 2.75 million shares in fiscal 2015 (which includes a special one - time stock option award for 500,000 shares each in connection with their appointment to CEO).
A reason to complain about buybacks is that the company is overpaying for the shares and / or doing it to offset share
dilution from stock options.
I understand this
rule from a stock option perspective but does this rule apply also for ESPP, for the Employment benefits / income part?
It was my understanding that with restricted stock units, all the shares that vest are considered a capital gain (different
from stock options where the gain is the difference between the strike price and sell price).
About $ 700 million of the $ 702 million was
from stock options earned after Schwarzman took the company public the year before.
The SSMB study also found that REITs are moving
away from stock options and instead are using restricted stock as a major part of board compensation.
However, those counting on a boost to their
income from stock options will need to pay particular attention to this upcoming budget, as the Liberals have hinted at possible changes.
The average chief — let's call him Larry, and say he lives in Ontario — made $ 6.6 million in 2009, about a third of
that from stock options.
Last year, he earned $ 27.9 million in compensation, most of which came from gains in value on restricted stock that vested and
from stock options.