The ISS analysis is aimed at the company’s proxy, top executives, whose salary details are included in documents that the company annually discloses to the Securities and Exchange Commission. The proxy provides investors with important financial information and guidance on how to vote on corporate proposals and board appointments.
Not all executives will benefit from subsidies in 2020, as many companies have suffered from the epidemic. In a survey of 2020 grants made by companies included in the Russell 3000 stock index, ISS found that 1,675’executive executives’ or executives appearing in the proxy, as of Wednesday’s closing price, gained and 1,388 lost. I found it. The average appreciation amount was nearly $1.5 million, and the average loss was $827,000.
The chief executive of a tech company, where many thrived during the pandemic, did particularly well. The average profit on grants in 2020 was $3.2 million and the average loss was $543,000.
The biggest gain in the survey was that Lynch invested $64 million in Peloton’s 2020 option grants. Stocks are up 500% above their 2020 lows.
If the company’s stock soars like Peloton’s, the employee stock trade is likely to create an immediate paper fortune. However, Miller said the company could structure stock compensation to reduce the likelihood of that, if desired. For example, a company can allocate a grant so that not all are granted when the stock is at a low or high point.
Peloton declined to comment.
Ray Jordan, a spokesman for Moderna, said Bancel’s options have been given over the years, which means “paper gains in months will not necessarily lead to long-term gains if stock performance is not maintained.”
Some executives at the company, badly hit by the epidemic, still did well. In March, MGM Resorts International chief executive William J. Hornbuckle gave up the rest of his 2020 salary and gave up his forgotten annual salary of $700,000, a limited inventory unit. After MGM stocks recovered somewhat from their lows in March, the grant is worth more than $1.3 million in bells, and his 2020 prizes are all valued at $4 million.