Restricted stock is a form of long-term equity incentive which is granted to employees with certain restrictions on ownership, usually in the form of a vesting period or performance conditions which must be satisfied before the recipient obtains full ownership rights in the stock. Time-based restricted stock is frequently used to retain key executives, as it is a full value award, and unlike stock options is not contingent on stock price appreciation or the achievement of performance targets in order to obtain the award. Restricted stock is a deductible compensation expense for the company and the employee recognizes income in the year it vests Restricted stock is also an important tool in recruitment situations used to make a recruited employee whole for awards that were forfeited by leaving his or her former employer and for other unique situations such as a corporate turnaround where the company desires to reward an executive with equity after a period of time. According to Equilar, 50% of S&P 500 companies grant restricted stock as part of their long-term incentive plans. However, performance-based equity plans are becoming increasingly common (see performance shares).