How will full-value awards (i.e. awards other than stock options and SARs) be valued in the calculation of Shareholder Value Transfer (SVT) in 2007?
A.) For companies with Feb. 01, 2007 and later meeting dates, ISS will value full-value awards at the company’s 200-day average stock price as of the applicable quarterly data download (QDD) date. This valuation will apply to both requested and available plan shares (A and B shares), as well as granted but unvested/unearned shares (C shares). Award values will not be adjusted to reflect time-based vesting conditions or dividend rights. For awards subject to market conditions (e.g. vesting linked to a company’s stock price or a market index) or performance conditions, ISS will generally adjust award values assuming full disclosure of the performance measure(s) and hurdle rate(s) in the company’s proxy statement or plan document. Shares that are valued at “full value” under other ISS policies (e.g. plans with no sub-limit on full-value awards, and plans that permit liberal share recycling) will also be valued at the company’s 200-day average stock price as of the applicable QDD date.
Related Questions
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