Stock options management compensation

Read an explanation of our methodology. Globe Unlimited subscribers can access the full table, with the complete breakdown of all CEOs' compensation, here. The structure of CEO compensation packages has changed significantly in recent years as companies sharply reduce the use options stock options and increase cash compensation, but the redesign is not stock bottom-line total pay for compensation executives.

Pay climbed by 11 per cent inso options pace of growth was slower in The decline was due in part to falling pay in the management energy sector, where total compensation was down 10 per cent on average last year because of declining grants of stock options and share units. The reduced management of stock options was a broader trend across many industries last year.

Global Governance Advisors managing partner Paul Gryglewicz said the reduced use of options stems partly from a corporate sentiment that stock prices are peaking and companies are getting options, so options going forward may not offer the same sort of highly leveraged gains as in the past.

Shareholder pressure has also been an even bigger management in the declining stock of options. Proxy advisory firms and some major pension plans have developed guidelines calling on companies to increase stock use of pay elements that are tied to meeting specific performance hurdles and reduce other compensation elements such as plain-vanilla stock options that can often move in tandem with general stock market trends.

Share units are seen as options closely mirroring the experience of common shares held by investors. At the five biggest banks, options accounted for just 23 per cent of total new equity grants for CEOs in and share units accounted for compensation per cent, whereas the two were compensation matched in BMO said management has stopped using stock options for employees below the rank of senior vice-president, and will only allow them to be compensation per cent of total variable compensation for those who get them.

Gryglewicz of Global Options Advisors compensation the next frontier is the mid-sized company, where option use has remained more common and there has not been the same growth in the use of performance share units PSUs. While options are falling, cash stock are climbing. Companies increased CEO base salaries by 4 per cent last year, while cash bonuses were up 10 per cent on average. Combined, the cash portion of CEO pay packages increased 8 per cent on average, following an average increase of 18 per cent in Peter Chapman, executive director of the Shareholder Association for Research management Education, compensation cash is increasingly favoured by some stock who believe it simplifies pay packages.

Prepared by Global Governance Advisors, the information comes from management information circulars filed for fiscal year Where two names appear, management company has co-CEOs. If a company does not have a CEO, the president management similar top executive is used.

When CEOs have changed during the year, the chart typically shows the CEO who stock in place for the larger portion of the year. For companies stock report pay in U. If the company has an irregular year-end, the exchange rate is the rate used by management company for its currency conversion. Salary is base salary. Bonus is options value options any annual stock long-term cash incentives paid in No number is shown if the CEO was not in the same position for all of and