The Compensation Committee and the board of directors strongly believe that senior executives should own a significant amount of company common stock.
This provides a direct and continuing alignment of financial interests between executives and stockholders.
The stock ownership guidelines for current named executive officers are as follows:
- 10-times base salary for Chief Executive Officer Fred Tomczyk and
- 5-times base salary for EVP and Chief Operating Officer Marv Adams, EVP and Chief Financial Officer Steve Boyle, President of Retail Distribution Tom Bradley and President of TD Ameritrade Institutional Tom Nally.
The stock ownership guideline for President Tim Hockey is ten times his base salary. None of these executive officers are permitted to sell any equity interest in the company until they meet their respective stock ownership guidelines, after which the chief executive officer must obtain prior approval from the Compensation Committee and all other senior executives must obtain prior approval from the chief executive officer. Fred Tomczyk has agreed to maintain stock ownership under these guidelines for two years after he ceases to be an employee or director of the company. The company considers any stock held without restrictions, unvested restricted stock units, vested but unexercised in-the-money stock options, deferred compensation that will settle in common stock and common stock held under the company's 401(k) plan in determining whether the stock ownership guidelines have been met. All current named executive officers have met the stock ownership guidelines.
The company does not allow any of its employees to enter into hedging transactions involving its common stock.