Have these halted stocks impacted your peer group?
This week, the New York Stock Exchange (“NYSE”) and Nasdaq have temporarily halted trading in the stocks of Russia-based companies listed on their exchanges. The halts are reported to be due to regulatory concerns as the exchanges seek more information following economic sanctions imposed on Russia after its invasion of Ukraine. A complete listing of the eight halted stocks is shown in the table below.
Companies that issue performance equity based on total shareholder return (“TSR”) of their stock relative to a peer group of companies should be aware if one of the halted stocks is part of their peer group, especially if the equity awards are nearing the end of their performance period. At this time, it’s not known when the halted stocks might resume trading, and all experienced significant decreases in price in recent days prior to the trading halt. Additionally, with the Moscow Stock Exchange currently closed due to concerns about economic sanctions, there is not an alternate source of trading data for these companies. The chart below illustrates the last 30 trading days and the decrease in TSR for these 8 securities ranging from -24.5% to -87.50%, and the halting of trading since 2/25.
If your company’s equity awards are affected, Infinite Equity can provide guidance on best practice. Contact us today.