The bull market in stocks that began in 1982 and ran with some stumbles through the 1990s also gave consultants an opportunity to juice their clients take by showing them that total compensation across corporate America was rising. Mr. Cook pointed this out in a speech last year. Because option grants were valued at the price of the underlying stock when awarded, he said, in periods of rising share prices, consultants could use the fact that total compensation from options was rising in their studies. For companies whose stock prices lagged behind the market or their peers, consultants recommended increasing the size of the option grants, to remain competitive.
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Rising Shar Prices
Underlying Stock
Total Compensation
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