Tempur Sealy International Inc. used a rarely applied rule to make an $81 million stock award to five top executives without recording its value, reducing their reported compensation for last year.
The award will pay out if the mattress maker exceeds a financial target -- a feat the board calls "not probable" -- or if the executives are let go after an acquisition by a third party, according to a proxy statement filed on Monday. The board didn’t include the $81 million in the compensation table for executives, citing a rule that lets companies value equity awards based on the probability their performance criteria will be met.
By Anders Melin, @melinanders, March 23, 2016, Bloomberg Business
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