According to a recent study by GGA in partnership with the Governance Professionals…Read More
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Arden Dalik, GGA’s Senior Partner in Western Canada, is once again featured in Oilweek magazine’s annual survey of the pay packets handed to presidents and CEOs in the exploration and production (E&P), midstream, and service and supply sectors.
Dalik was speaking to the fact that stock options are losing their lustre as key components of compensation programs in the oil and gas business and commented that this should come as no surprise. “It’s a trend that GGA has noted right across the country, in all business sectors. And it’s a trend that has a number of factors supporting it.”
“First and foremost, at larger companies the potential gains from holding stock options are lower as it becomes more difficult to grow option gains at the same rate as the company increases in size,” she stated, adding that institutional investors and shareholder advisory services tend to view stock options as a riskier form of compensation, encouraging short-term thinking to boost share prices.”
“Shares, however,—either restricted share units (RSUs) or performance share units (PSUs)—are viewed as being more closely aligned to what a regular shareholder experiences when holding shares or stock options,’ Dalik said.”
You can read the full piece by Oilweek’s editor Dale Lunan here.