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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.


Last update: August 10, 2020

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