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Essay / Research Paper Abstract
This 11-page paper is a discussion about stock options and how they're regarded and used in the United States and France. Bibliography lists 5 sources.
Page Count:
11 pages (~225 words per page)
File: D0_MTstocop.rtf
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Unformatted sample text from the term paper:
that stock options be a valuable part of an overall compensation package. Most Americans are familiar with the story of the early days of Microsoft, for example. When founders Paul
Allen and Bill Gates were just starting out, they had no money to offer employees, so they offered stock options instead. The rest, as they say is history. Microsoft stock
went through the roof, employees sold their options and retired early as "Microsoft millionaires." During the telecom boom of the mid to late 1990s, fortunes were also made on options
(which prompted those who didnt know what they were doing to enter the market, but thats for another paper). When stocks rose sky high, people owning the options sold them,
took the cash and retired. These days, the furor over options has calmed down somewhat, but they do remain an important part
of the reward system in corporate America. Many times, options are used as an important part of a compensation package, as neither employee nor employer needs to pay taxes on
the proceeds until the options are exercised (or they expire). Theyre also used as good motivators for employee productivity (Johanson, 2004). Stock options give employees a sense of ownership in
a company - the harder they work, the higher a stock is likely to rise, thus making options that much more valuable.
In short, stock options are becoming a very popular part of long-term compensation incentives for executives - it basically encourages them to stay with a company for a longer time
(Johanson, 2004). In addition, theyre being offered to many employees in U.S. companies (Johanson, 2004). Finally, theyre easy to administer and oversee because options dont require a company to set
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