DATE PUBLISHED: MARCH 19, 2024
Special grants — equity awards made outside of regular annual compensation — can be an effective compensation vehicle but can also generate investor concern if they are perceived as excessive or unjustified. These grants may take the form of new hire or promotion awards, one-time retention awards or one-time incentives, and are often rationalized as helping to attract, retain and incentivize executives.
In this report, ISS-Corporate analyzes non-cash special grants awarded to CEOs in the U.S. in fiscal year 2022 to shed light on how they are used in compensation packages and whether the controversy surrounding their use is merited.
