Company Share Options
Company share options schemes have been the source of much debate over recent years. Critics have seen them as a significant component of the excessive compensation, and the "fat cat" rewards, received by senior executives. They further link this to the widening gap between the compensation awarded to senior executives and that received by other employees. Advocates of the use of executive and employee share options point out that they:
* Help to align the interests of executives and employees with those of shareholders?
* Increase productivity
* Encourage entrepreneurship
* Provide a means of attracting key staff
* Conserve the scarce cash resources of growth businesses
Increasingly, company share option schemes are becoming an indispensable feature of the compensation of both executives and employees, particularly in high technology growth businesses. Their use is promoted by governments, who view them as encouraging entrepreneurship, facilitating employee share ownership, and assisting in the creation of a stakeholder economy. This book examines all aspects of the use of company share options and provides an essential grounding in this vital topic.
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Employee Share Ownership
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accounting rules Accounting Standards adoption align the interests all-employee share American options amount benefit capital gains tax changes chief executive company's shares compensation committee corporate governance date of grant debate decisions determining disclosure dividends early exercise earnings per share effect employee share ownership employee share schemes employment ESOPs executive compensation executive share option exercise price exercise the option exposure draft factors fair value FASB FASB's proposals grantor company Greenbury identified incentives income tax relief increase independent directors institutional investors interests of managers intrinsic value investment issued legislation managerial market price market value measures monitoring non-executive directors non-transferable number of shares options are granted performance criteria problem profits risk aversion role seen senior executives senior managers share option compensation share option schemes share price shareholders shares acquired stock options suggested takeovers target company underlying shares value of share vesting period volatility