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New Tool May Address Executives' Concentrated Stock Position Problems
Winston & Strawn LLP via Lexology; registration required
[Opinion] Dec. 7, 2018 "[R]equiring all executives to hold the majority of their wealth in a single asset may encourage executives to become risk averse in a manner that is contrary to the stockholders' interests.... StockShield establishes and maintains a 'Stock Protection Trust,' designed to limit the downside risk of company stock holdings while preserving their full upside potential.... [U]nlike selling the stock, this strategy is intended to create no downward pressure on the shares." MORE >> |
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