Value of S&P 500 CEO Outstanding Equity Awards Surges +35.8% in 2012
S&P 500 CEOs experienced an increase of +35.8% in the value of outstanding equity awards during 2012. This +35.8% increase far outpaced the +1.2% increase these executives experienced on similar awards in 2011. These results are based on a recently completed Steven Hall & Partners study focusing on this topic; complete study details are available here as well in the below slideshow.
SH&P’s study also found that the number of underwater options (those in which the exercise price exceeds the current stock price) in the S&P 500 decreased significantly due to the market rise in 2012. At the end of 2012, 47% of S&P 500 CEOs had at least one underwater option grant outstanding, a substantial decrease from December 2011, when 65% of S&P 500 CEOs had at least one award underwater. In addition, the study found 25% of all S&P 500 options were underwater as of December 31, 2012, down significantly from the 37% which were underwater as of December 2011.