equity compensation golden decade 2013 update
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Equity Compensa0on Golden Decade™
chart from www.macrotrends.net 1913-2013
The Equity Compensation Golden Decade started in 1988 and ended in 1999. The section in yellow highlights the peak growth period for equity compensation as a compensation tool. The focal equity instrument during this period was stock options. This was mainly due to advantageous accounting rules and the limited downward volatility of stock prices. Broad-based equity became common in this period.
A more traditionally volatile period began in 2000. During the next decade the use of time-based full value equity awards such as restricted stock and restricted stock grew considerably.
2010 saw the implementation of Say on Pay voting required by the Dodd-Frank Act. Since this time there has been a steady growth in the use of performance-based full-value equity awards, focused on executives.
1988 2000 2010