Broad-Based Employee Stock Options in the U.S

Broad-Based Employee Stock Options in the U.S
Author: James C. Sesil
Publisher:
Total Pages:
Release: 2004
Genre:
ISBN:

While stock options have traditionally been reserved to top management employees, in recent years there has been strong growth of plans making stock options available to a broader group of employees. This paper analyses data on 490 companies with broad-based stock option plans, matched to data from Compustat in order to compare their characteristics and performance to that of other public companies. Major findings are that 1) companies with broad-based plans have higher levels of productivity, Tobin's Q, and employment and sales growth than otherwise-similar firms, 2) average compensation levels are higher among such companies both before and after the introduction of broad-based plans, indicating that stock options appear to come on top of other compensation, and 3) increases in average productivity appear to counterbalance the dilution effect so that average total shareholder returns are unaffected by the introduction of broad-based stock option plans.

Shared Capitalism at Work

Shared Capitalism at Work
Author: Douglas L. Kruse
Publisher: University of Chicago Press
Total Pages: 433
Release: 2010-06-15
Genre: Business & Economics
ISBN: 0226056961

The historical relationship between capital and labor has evolved in the past few decades. One particularly noteworthy development is the rise of shared capitalism, a system in which workers have become partial owners of their firms and thus, in effect, both employees and stockholders. Profit sharing arrangements and gain-sharing bonuses, which tie compensation directly to a firm’s performance, also reflect this new attitude toward labor. Shared Capitalism at Work analyzes the effects of this trend on workers and firms. The contributors focus on four main areas: the fraction of firms that participate in shared capitalism programs in the United States and abroad, the factors that enable these firms to overcome classic free rider and risk problems, the effect of shared capitalism on firm performance, and the impact of shared capitalism on worker well-being. This volume provides essential studies for understanding the increasingly important role of shared capitalism in the modern workplace.

The Impact of Broad-Based Stock Options on Firm Performance

The Impact of Broad-Based Stock Options on Firm Performance
Author: James C. Sesil
Publisher:
Total Pages: 28
Release: 2005
Genre:
ISBN:

In this paper, we examine if firm size is associated with the impact of broad-based stock options. The free-rider theory would predict that stock options may only have a motivational impact in small firms where there is a more likely to be a clearer connection between actions and the performance of the firm. Our evidence does not find any support this prediction from theory. We find that both small and large firms perform better compared to their non-stock option same size peer.

The FASB Stock Options Proposal

The FASB Stock Options Proposal
Author: United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
Publisher:
Total Pages: 224
Release: 2004
Genre: Business & Economics
ISBN:

Employee Stock Options, Payout Policy, and Stock Returns

Employee Stock Options, Payout Policy, and Stock Returns
Author: Wojciech Grabowski
Publisher: Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften
Total Pages: 0
Release: 2012
Genre: Corporations
ISBN: 9783631630358

The book investigates empirically mechanisms behind the recent widespread use of employee stock options and share repurchases in corporate financial management. Exploring through econometric models a sample of large U.S. technology corporations in the period between 1997 and 2005, it documents complex links between stock option plans, payout policy and other key financial characteristics of these firms. The models highlight the interplay between the interests of long-term shareholders, optionholders and speculative investors and provide estimates of joint effects of option dynamics and repurchases on stock returns, undervaluation and option plans on payout policy as well as risk taking and revenue growth on payoffs to shareholders and optionholders.