Rewarding Long-Term Shareholders: The Use of European and U.S. Loyalty Share Programs



Thomas Conaghan, Lionel Lesur, Lindsey Reighard and Louis Leroy wrote this bylined article on the use of loyalty shares that give shareholders a reward (additional shares or dividends) if they hold their shares for a certain period of time. Although popular in Europe and making their way into the US, the authors wrote that “because of the lack of regulatory guidance in the United States (unlike in Europe), companies should tread carefully if they decide to proceed with such a program in this country.”