Throughout his tenure at Federal Signal, Robert D. Welding held significant stock options that were subject to vesting based on company performance. When he left the position in December 2007, he had unvested stock options amounting to approximately 203,500 shares...

Throughout his tenure at Federal Signal, Robert D. Welding held significant stock options that were subject to vesting based on company performance. When he left the position in December 2007, he had unvested stock options amounting to approximately 203,500 shares that would never be exercised, reflecting a tough decision impacted by market conditions and his resignation. At his peak, his holdings tied to the company were considerable, but they diminished significantly with his departure. His decision to step down included forgoing a wealth of financial gains, showcasing the cost of leadership during difficult times. The volatility of stock values meant that at one point, his net worth tied to these options could fluctuate widely—illustrating the high-stakes nature of executive compensation.