Thirty-eight percent of large U.S. companies have share ownership guidelines in place for senior management and almost one-fourth specify a multiple of salary - two to eight times - as the amount of company stock they expect their senior managers to own.
That's a sharp rise from two years ago, when only 22% disclosed guidelines.
The analysis by Pearl Meyer & Partners Inc., a New York executive compensation firm, is based on 1996 proxy statements of 95 companies with revenue of at least $2 billion.
An additional 10% to 15% of companies have share ownership policies for senior management that are not publicly disclosed, raising the number with such guidelines to approximately 50%.
The average multiple of salary for chief executive officer was five times; for president, four times; and for other senior management, three times.
Formal share ownership guidelines also are being extended to directors at 6% of companies. Guidelines range from a vague requirement to a mandated ownership of three to five times the value of the annual retainer.