Printer Friendly

Option Practices Continue to Shift.

Troubles in the tech sector haven't eliminated stock options by any means, but companies have been compelled to change some of their practices.

So says a survey conducted by Unifi Network, a subsidiary of PricewaterhouseCoopers, in conjunction with the National Association of Stock Plan Professionals. The survey of 113 U.S.-based public technology companies found that 84 percent have employee stock purchase plans, versus 62 percent of companies in other industries. Moreover, high-tech companies have begun to shift to shorter option terms and vesting periods, as well as more frequent grants, in an effort to enhance employee retention and to mitigate the issues associated with volatile stock prices.

Repricing options whose values have declined is likely to continue, says Ed Speidel, a director in the Unifi Network's executive compensation practice. But the market's slamming of many tech stock means that "it is likely that equity plan participation will be perceived to be a less important component of total compensation by employees if this downturn continues," he adds. In fact, 10 percent of the tech companies surveyed have moved to more frequent grants during the year, Speidel said.
COPYRIGHT 2001 Financial Executives International
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:executive compensation
Publication:Financial Executive
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 1, 2001
Previous Article:Interim Execs in Demand.
Next Article:Business E-Mail: "Occupational Spam?".

Related Articles
NACD offers guidance on setting directors' compensation.
Largesse oblige.
Entrepreneurship and executive compensation: turning managers into owners.
Physician executives boost clout, earning power: Overall median compensation reaches $210,000. (Careers).
Executive compensation sites.
Committees under new pressure: experts discuss current practices and changes proposed for corporate compensation committees in the wake of recent...
Study shows significant raises for REIT board members.
Linking CEO pay to performance.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters