Wednesday, April 2, 2008

Executive Equity Grants

This survey of BEDC Members supplied interesting anecdotal data that supplements the peer group information which we access for the top positions. As you might imagine, the data is widely dispersed for those who use multiple of salary or percentage to value annual grants. Here are the ranges reported:

CEO 20% - 300%
EVP 15% - 100%
SVP 12% - 100%
VP 10% - 62%
Director 5% - 33%

In speaking with the top HR or Comp folks at several peer diagnostic companies, the trend tends to be to target equity more in the 3x range for CEO, 2x range for SVP, and 1x range for VPs.