How to Find out How Much Stock a CEO Holds
You have probably heard of the large amount of stock
compensation company officers hold compared to the average
salary of the rank and file worker within the same publicly held
company. Are you curious about how much stock the CEO and other
officers of a particular company hold in their possession?
Here is how you find out. Go to the NASDAQ website and enter the
stock ticker symbol of the company you are interested in. Click
on 'Flash Quotes'. Use the drop down box to select 'Insider Form
4'. Scan down the list until you find the company officer's name
you are interested in. Click on that name. Go to the top of the
list which should be the latest date. Move your eyes to the far
right column entitled 'holdings'. That is how many shares that
officer currently holds and controls. Multiply that number by
the most recent price for the company's stock and you will
arrive at a dollar figure.
Of course, that figure will change from day to day. You may be
surprised at just how high that number is. You may also want to
consider that this is merely the officer's current stock
holdings. It doesn't tell you how many shares he has sold in the
past; it also doesn't tell you how many shares the company will
grant him or her in the future.
When you start to look at these figures you may become very
amazed. If you are currently a company CEO or officer, the
numbers will not shock you because you will already be familiar
with them. However, if you are currently an employee for a
publicly held company you may wonder about the discrepancy
between your salary and the officers' stock holdings.
Some will say, 'but the CEO and other officers worked hard for
their money'. And that may very well be true. But did they
really work any harder than you do on a day to day basis? And if
they did, does the harder work they did add up to account for
the discrepancy between an average worker's pay and a company
officer's stock holdings. Chances are, the answer is no.
This leads to some interesting realizations about how our
economy works. The days of serfdom are supposed to be over, but
are they really? The serfdom is now an economic one. The real
estate owned and tribute collected by a monarch have been
replaced with stock compensation for corporate officers and
owners. But the serf or worker is the one who does the work. The
monarch and his court are still the ones who reap the rewards.
In private companies you probably won't be able to find out the
information that you can find on the NASDAQ website about
publicly traded companies. I think it is a good thing that the
SEC or Securities and Exchange Commission requires this
information to be available to the public. Of course, it is
meant to be available to potential investors. But if you own
stock in your company via a 401K plan, that makes you an
investor.
Besides the NASDAQ website, you can also find this information
on the Securities and Exchange Commissions' website. In fact,
there is a wealth of information out there to discover. In many
instances it is actually easier to find on the NASDAQ website.
Perhaps knowing the value of the stock held by company officers
will make you less timid about asking for that raise you
deserve. Knowledge often equates to power.