Executive Ownership¶
Definition¶
Executive ownership measures the proportion of the firm's common equity owned by its executives.
ExecSharePct
¶
Executive-year level, executive share ownership:
where SHROWN\_TOT is the shares owned by the executive (as reported) from Compustat Execucomp Annual Compensation EXECCOMP.ANNCOMP
, and CSHO is the common shares outstanding from Compustat Fundamentals Annual WRDS.COMP.FUNDA
.
ExecSharePctExclOpt
¶
Executive-year level, executive share ownership excluding options:
where SHROWN\_EXCL\_OPTS is the shares owned by the executive, excluding options, from Compustat Execucomp Annual Compensation EXECCOMP.ANNCOMP
, and CSHO is the common shares outstanding from Compustat Fundamentals Annual WRDS.COMP.FUNDA
.
ExecOptPct
¶
Executive-year level, executive share ownership based on shares acquired on option exercise:
where OPT\_EXER\_NUM is the number of shares acquired on option exercise by the executive from Compustat Execucomp Annual Compensation EXECCOMP.ANNCOMP
, and CSHO is the common shares outstanding from Compustat Fundamentals Annual WRDS.COMP.FUNDA
.
ExecShareVestPct
¶
Executive-year level, executive share ownership based on shared acquired on vesting:
where SHRS\_VEST\_NUM is the number of shares acquired on vesting by the executive from Compustat Execucomp Annual Compensation EXECCOMP.ANNCOMP
, and CSHO is the common shares outstanding from Compustat Fundamentals Annual WRDS.COMP.FUNDA
.
ExecIncentivePct
¶
Executive-year level, value realized on option exercise and vesting scaled by total compensation:
where OPT\_EXER\_VAL is the value realized on vesting and TDC1 is the executive's total compensation, both from Compustat Execucomp Annual Compensation EXECCOMP.ANNCOMP
.