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Stock Options vs. Restricted Share Units - Large Corporations

  • 22 Mar 2012 2:42 PM
    Message # 866122
    Deleted user

    I am interesting in hearing how many companies have moved from granting stock options to grant of restricted share units or phantom option plans? or any other type of LTI and;

    What is the lowest level in the organization that you grant options, restricted share units or any other form of LTI.

    Thank you,
  • 23 Mar 2012 12:31 PM
    Reply # 866878 on 866122
    Deleted user
    We view options as a fundamental component of the compensation program. All employees of the company are granted options. Options are granted to all new hires upon joining the company and are granted annually as part of the bonus program to all employees based on corporate and personal performance.
  • 23 Mar 2012 1:57 PM
    Reply # 866933 on 866122
    Deleted user
    We began awarding Performance Share Units two years ago.

    To date, only our most senior executives have received them.

    The first year they were awarded along with stock options to replace a portion of the grant.

    Last year, for those executives, the PSU award replaced the stock option grant.

    We continue to award stock options but the scope of the award has been curtailed.  Only more senior vice-presidents now receive stock options as part of their compensation package.

    The PSU plan is fully described in our 2011 Management Proxy Circular: http://www.cgi.com/sites/cgi.com/files/pdf/cgi-2011-management-proxy-circular-e.pdf

    I am available to discuss this if you wish: david.masse@cgi.com - 514-841-3277
  • 26 Mar 2012 2:15 PM
    Reply # 868742 on 866122
    Deleted user

    Our LTIP grants are made in equal amounts of restricted share units (RSUs) and options.  The RSUs vest after 4 years; the options vest 25% per year over four years. We have minimum shareholding expectations among LTIP recipients.  Awards are made from to all senior management (VP and above) and selectively down to manager level – related to performance.
  • 26 Mar 2012 2:34 PM
    Reply # 868756 on 866122
    Anonymous
    1. currently, we issue stock options and psus, but are going to be examining moving from stock options to other kinds of LTI this year; and 
    2. we don’t issue stock options or psus to all employees – only those we consider part of “leadership”.  This too may change in the future.
     Publicly traded mid-cap
  • 26 Mar 2012 2:35 PM
    Reply # 868757 on 866122
    Anonymous
    We moved from granting stock options only (practice since our IPO in 1996) to granting both options and RSU’s in 2008.  The only other LTI we use is Deferred Share Units but that is available only to directors at this point in time.

    We granted options to all employees until 2008, when we moved away from that and now, due to the increasing number of employees (nearly 1,000) we simply can’t continue to grant so many options.  

    We are publicly traded company on the TSX with about 1.1 – 1.2 Billion in market capitalization. 
  • 26 Mar 2012 2:36 PM
    Reply # 868758 on 866122
    Anonymous
    Large Publicly traded

    We do not issue stock options any more (and have not for 8 years). We issue RSUs to all members of the company and PSUs only to senior management.
  • 09 May 2012 10:58 AM
    Reply # 915563 on 866122
    Deleted user

    We issue 50/50 options / RSU's to our Executive, Level A (VP), and Level B1 employees (certain more senior Director level employees).   We issue RSU's to our Level B2 (certain less senior Director level employees) and Level C employees (senior manager employees).  We also have a discretionary pool of RSU's that we issue to employees at Level D (amanger) and below, mainly targeted at high potential employees and employees with critical skills.  

    We are an approximately $900M market cap company. 

    Last modified: 09 May 2012 11:03 AM | Deleted user

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