Stock options grow

Giving stock to more employees drives improved corporate performance.
By David Brown
|Canadian HR Reporter|Last Updated: 03/16/2001

Sure, stock options have been around for years — it is their growing pervasiveness that should be on the minds of HR departments.

In their report for the Conference Board of Canada, Assessing the options: Stock option plans in Canada, authors Derrick Hynes and Judy Lendvay-Zwickl conclude that just as variable compensation and annual incentive plans have become essential parts of total reward strategies, so too will stock options.

And why not? Employees want them, so stocks will become necessary as a recruitment and retention tool. But employers shouldn’t balk at the idea. On the contrary, research suggests companies that introduce stock option plans perform better than those that don’t. Hynes and Lendvay-Zwickl say companies with stock options in place grow up to 11 per cent faster than those without a plan.