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:

$$\text{ExecSharePct}_{e,t} = \frac{SHROWN\_TOT_{e,t}}{CSHO_{i,t}}$$

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:

$$\text{ExecSharePctExclOpt}_{e,t} = \frac{SHROWN\_EXCL\_OPTS_{e,t}}{CSHO_{i,t}}$$

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:

$$\text{ExecOptPct}_{e,t} = \frac{OPT\_EXER\_NUM_{e,t}}{CSHO_{i,t}}$$

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:

$$\text{ExecShareVestPct}_{e,t} = \frac{SHRS\_VEST\_NUM_{e,t}}{CSHO_{i,t}}$$

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:

$$\text{ExecIncentivePct}_{e,t} = \frac{OPT\_EXER\_VAL_{e,t} + SHRS\_VEST\_NUM_{e,t}}{TDC1_{e,t}}$$

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.

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Last update: July 30, 2020