Management Share Ownership Policy
We have a share ownership policy which applies to all full-time members of our management team at the vice president level and above, and any part-time vice presidents who continue to receive stock-based awards under our equity compensation programs. The purpose of the policy is to ensure that our senior management team accumulates a meaningful ownership stake in the company over time by retaining a specified financial interest in our common stock.
Both shares owned directly and shares underlying vested but unexercised stock options, stock appreciation rights, and restricted stock units are included in the determination of whether the share ownership guidelines are met. The total net realizable share value retained must have a current market value of not less than the lower of:
- 25% of the total equity award value in excess of $100,000 realized to date by the executive (since promotion to VP); or
- a specific multiple of the executive's base salary.
The salary multiples range from one times salary for vice presidents to three times salary for our chief operating officer and chief financial officer. The salary multiple requirement is five times salary for our chief executive officer. As of December 31, 2010, 90 of the 92 executives subject to the policy, including all of our named executive officers, were in compliance with the share ownership policy.
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