Restricted Stock: The Case for Total Shareholder Return

Abrams, Daniel; Cohen, Allan; Suzman, Peter
December 2006
Financial Executive;Dec2006, Vol. 22 Issue 10, p44
Academic Journal
The article focuses on the exclusive use of market-based or performance-based restricted shares for executive compensation. It states that equity-based compensation strategy often involves six factors: controlling accounting costs, minimizing accounting cost variability, providing perceived value to employees, employee retention, increasing share value by creating employee incentives, and limiting plan administration complexity. It comments on the structure of absolute and relative awards and the use of market-based vesting conditions by businesses.


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