High-Tech Companies Sticking With Stock Options Outperform Those Offering Restricted Stock, Study Finds
Highlighting the benefits of tying pay to company performance, a new study by DolmatConnell & Partners, Inc. (DC&P) shows that high-tech companies offering only stock options generally outperform those offering restricted stock as a long-term incentive.
"These results validate our belief that the stronger the link between executive pay and company performance, the more likely the company will be to outperform the competition," said DC&P President Jack Dolmat-Connell.
DC&P's study of executive compensation and long-term incentive usage in the 100 largest high-tech companies in the U.S. found that high-performing companies were 65% more likely than low-performing companies to grant stock options to their CEOs as the only long-term incentive and were 39% less likely to grant restricted stock.
Conversely, low-performing companies were 32% less likely than high-performing companies to grant only stock options, but 63% more likely to grant restricted stock.
See full Press Release.
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