Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Tech Companies Still Like Stock Options
John Radford, senior vice president of Aon Consulting’s Radford Surveys group said in a company news release, “The rumored death of stock option compensation in the tech industry was greatly exaggerated.”
The 11% of companies who reported they would be eliminating future stock option grants said they plan to offer restricted stock or settled stock appreciation rights instead. Offerings of restricted stock has increased from 40% prior to the FASB’s new rule (FAS123) to 77% after FAS123, according to the news release.
A recent Deloitte survey of companies from all sectors found 75% of companies plan to reduce or had already reduced the number of stock options granted (See Stock Options Cut in Response to FAS123 ). Ninety two percent chose some type of restricted stock vehicle as an alternative to stock option grants.
Also affected by FAS123 are Employee Stock Purchase Plans (ESPPs). The survey showed that more than two thirds of those companies who have made a decision about FAS123’s affect on their ESPP have decided to keep their plans the same.
AON’s news release can be read here . This survey and others can be found at www.radford.com .
You Might Also Like:
E*TRADE Launches Planning Center for Equity Compensation Plan Participants
ERISA Stock Drop Challenge Targets Allergan
The firm is being challenged in a New Jersey district court for alleged imprudence in the management of its employee...
Lehman Stock Drop Suit Passed Over By Supreme Court
The high court will not offer another review to the long-running case, letting stand a lower court ruling that effectively...
« Appeals Court Affirms Decision For Alaska Airlines In FMLA Case