Compensation Advisory Studio · Executive Compensation

Stock Ownership Guidelines

NEO ownership multiple, holding requirements, and progress to target.

What this analysis does

Track each NEO's stock ownership against the comp-committee-approved multiple of base salary, with the holding requirement and an at-a-glance status.

Required data

Approved ownership guidelines, current shares held (vested + unvested counted per policy), current share price, base salary.

Key outputs

Per-NEO multiple, required multiple, holding requirement, dollar value of current and required shares, status badge.

Data caveats

Ownership counting conventions differ (some companies include unvested PSUs at target, some only vested + RSUs). Confirm the convention used in proxy disclosure.

Advisor takeaway

Two NEOs Met (CEO and CFO), four Building, one Below (CHRO at 1.2×, requirement 2×). Build-window is 5 years; CHRO joined within last 18 months and is on a credible glide path.

Next recommended action

Add ownership-progress disclosure to the proxy CD&A — see Proxy Disclosure Support.

Met
2
of 7
Building
4
Below requirement
1
M. Reyes · CEO
Hold 50% net after-tax shares until 6× met
Met
7.2× of 6×
Current shares (value)
$9.50M
Required at policy
$7.92M
S. Patel · CFO
Hold 50% net after-tax shares until 3× met
Met
3.4× of 3×
Current shares (value)
$2.24M
Required at policy
$1.98M
A. Chen · COO
Hold 50% net after-tax shares until 3× met
Building
2.6× of 3×
Current shares (value)
$1.69M
Required at policy
$1.95M
L. O'Brien · CTO
Hold 50% net after-tax shares until 3× met
Building
2.1× of 3×
Current shares (value)
$1.47M
Required at policy
$2.10M
K. Suzuki · GC
Hold 50% net after-tax shares until 2× met
Building
1.8× of 2×
Current shares (value)
$1.04M
Required at policy
$1.16M
R. Kapoor · CHRO
Hold 50% net after-tax shares until 2× met
Below
1.2× of 2×
Current shares (value)
$0.62M
Required at policy
$1.04M
J. Martin · Pres NA
Hold 50% net after-tax shares until 3× met
Building
2.9× of 3×
Current shares (value)
$1.86M
Required at policy
$1.92M
Advisor takeaway
Medium
What we found

One NEO is Below requirement (CHRO at 1.2×, required 2×). All other NEOs are Met or on a credible glide path. The holding-until-met policy is operating — no NEO has reduced holdings.

Why it matters

Stock-ownership compliance is an ISS Quality of Compensation factor. A single Below status is acceptable if the NEO is within a build window (typically 5 years from appointment).

Recommended action

Confirm CHRO is within the 5-year build window and disclose in the proxy CD&A. Hold ownership policy unchanged.

Risks

If CHRO build window has lapsed without meeting requirement, comp committee must act (additional grants, salary hold, etc.). Verify build-window start date.

Questions to ask the client
  • Was CHRO's ownership build-window confirmed at hire? If not, when does it expire?
  • Should the policy expand to non-NEO senior leadership (Pres NA at 2.9× is well below the implicit 3× ask)?
Data caveats

Share values assume current market price. A material price drop could shift Building NEOs to Below — re-run before any proxy lock.

Suggested next module

Open Severance / CIC to review contract exposure.