s "off the books" ("Latest Stock" 22).
The restricted stock kicker program gives the executive restricted stock when the option is exercised. In the example above, the CEO would receive 1,000 shares of restricted stock at $15 per share when the option was exercised. If the executive holds the restricted stock for a specific period of time, the stock eventually becomes unrestricted. (Restricted stock is that which cannot be sold at full profit to the holder.) Using this method encourages executives to hold the stock rather than selling it immediately (Martin 23).
Premium price stock options have a higher exercise price than the market price when the option is granted. Using the previous example, the market price might be $10 per share at the time that the CEO is granted the option to purchase at $15 per share. This strategy encourages the CEO to take the actions that maximize the shareholder value since that is the only way that th
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