Thursday, April 19, 2007

Rambus Inc. -officer & director equity holdings

On October 18, 2006, Rambus Inc. Board of Directors adopted stock ownership guidelines for the officers and directors of Rambus Inc. stating:

. . . stock ownership is an important means by which to align the interests of Rambus' executive officers and independent directors with the long-term interests of Rambus' shareholders.

Under the Stock Ownership Guidelines, each executive officer of Rambus is required to accumulate and hold an equivalent value of Rambus common stock (or qualifying equity holdings) equal to or greater than 2 times to 5 times her or his annual base salary, and to maintain this minimum amount throughout her or his tenure as an executive officer. The following executive officers are required to accumulate and hold the following equivalent value of Rambus common stock (or qualifying equity holdings):

Chief Executive Officer: 5 times annual base salary

Other Section 16 executive officers: 3 times annual base salary

Non-Section 16 executive officers: 2 times annual base salary

All executive officers are required to achieve this accumulated value requirement within five years of January 1, 2007, or the date that the executive officer assumes their position, whichever is later.

Read about the directors and the rest of the stock ownership guidelines for executive officers and directors linked here at Rambus Inc.

Hat to the Rambus Inc. Board of Directors . . .

1 comment:

Threejack said...

Hey Treowth,

Great find. Have not seen this before, so thanks for the post.

While the effect is mostly window dressing (5/3/2x salary as a permanent stake in Rambus) believe the intention is honorable. It is a statement to non-employee shareholders that key Rambus personnel have a long-term stake in the Company beyond their annual compensation.

Should slow the option sales for awhile.

Think Messrs Kennedy and Hughes deserve credit.

Just my opinion.

Threejack

 
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