Restricted Stock awards to Senior Executives are
Free! The cost is Zero! Common share owners must pay for their shares.
Free Restricted Stock awards increase the number of shares outstanding. This dilutes the ownership share of the corporation held by investors.
Free Restricted Stock awards can be released to recipients, even if the shares have not vested!
Free Restricted Stock awards can include Dividends and Voting Rights, even if the shares have not vested!
Free Restricted Stock awards vastly increase the compensation disparity between Senior Executives and front line employees.
Free Restricted Stock awards guarantee recipients a profit, even if the stock price decreases.
Regarding Coca-Cola . . .
Just under 32 million free restricted shares, some vested, some unvested, were awarded to former Coca-Cola Executives Roberto Goizueta, Don Keough and Doug Invester. On May 1, 2016, these free shares had a current market value of 1.4 billion dollars.
How much is enough?
Note . . .
Financial data on this website were obtained from corporate proxy statements, financial reports and U. S. Securities & Exchange Commission filings.
Dedicated To John J. Gilbert . . .
Gilbert was a Champion of corporate governance and the creator of the Shareholder Proposal Process, a system Gilbert called the “Magna Carta” of shareholder rights.
John J. Gilbert . . . 1914 - 2002.
Illustration . . .
Plutocrat CEO and His Free Restricted Stock Windfall