Executive Compensation

How Longer Vesting Periods Could Reshape Equity Pay

By David Bixby and Eddie Capistran

06/13/2025

Directorship Magazine Executive Compensation Member-Only

Evaluate whether longer-vesting restricted stock is right for your executive compensation plan by following these considerations.

 

Long-term equity-based incentive opportunities are generally viewed as the most effective way to retain executives and align them with shareholder interests. Most US public companies vest long-term incentives over a three-year period, with an emphasis on ...

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David Bixby
David Bixby
is a partner at the executive compensation consulting firm Meridian Compensation Partners.

Eddie Capistran
Eddie Capistran
is a senior consultant at the executive compensation consulting firm Meridian Compensation Partners.

Meridian Compensation Partners is a NACD partner, providing directors with critical and timely information, and perspectives. Meridian Compensation Partners is a financial supporter of the NACD.