Comp Briefs (Oct. 8, 2001)

By
|Canadian HR Reporter|Last Updated: 10/02/2001

STILL VALUE IN STOCK OPTIONS

San Francisco

— Although the perceived value of stock options has taken a hit in the past year, companies, and the people they employ continue to look favourably upon them as powerful value generators, according to a new U.S. study. Fully 80 per cent of companies that have experienced underwater options have no plans to change their compensation philosophy to eliminate the use of stock options, a survey of 107 companies conducted by San Francisco-based compensation consulting firm iQuantic Buck reports. Of the firms surveyed, 89 per cent reported having recently experienced underwater issues. Among the studies other key findings:

•employee retention concerns continue to drive companies that are adopting responses to underwater issues;