Compensation: options out, restricted stock in

Chief Executive, The, May, 2004

AMONG 47 U.S. PUBLIC COMPANIES that had the same CEOs in 2002 and 2003, 40 percent made significant changes to their compensation programs. The most common change: increasing the use of restricted stock, often as a replacement for options, according to a survey by Pearl Meyer & Partners. (See chart below.)

[GRAPHIC OMITTED]

[GRAPHIC OMITTED]

Options/Restricted Stock
% change from 2002 to 2003

Restricted Stock     104.5%
Stock Option Value   -34.4%

Note: Table made from bar graph.