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Random Term
Ownership guidelines

Requirements at some companies that executives, directors, and key employees own a specified amount of company stock so that their financial interests are clearly aligned with those of shareholders. The most commonly used guidelines require stock ownership with a value based on some multiple of salary (e.g. 3x salary). A minority of companies express ownership as a specific number of shares. The guidelines are tiered by position so that the CEO has the highest level ownership requirement. Guidelines at some companies include NQDC designated in company stock.