Broad-based Employee Stock Options in the U.S. - Company Performance and Characteristics

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 labor productiv...

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Bibliographic Details
Published inManagement Revue Vol. 18; no. 1; p. 5
Main Authors Sesil, James C, Kroumova, Maya K, Kruse, Douglas L, Blasi, Joseph R
Format Journal Article
LanguageEnglish
Published Baden-Baden Nomos Verlagsgesellschaft mbH und Co KG 01.01.2007
Subjects
Agreements
Compensation plans
Corporate profits
Employees
Financial performance
Game theory
Grants
Incentive plans
Information sharing
Performance management
Prices
Productivity
Profit sharing plans
Profitability
Public companies
Regression analysis
Stock options
Stockholders
Studies
Wages & salaries
Workers
United States > US
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Summary: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 labor productivity, employment growth, and sales growth than otherwise-similar firms. 2. productivity and profitability levels rise as broad-based plans are adopted. 3. 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.
ISSN:0935-9915
1861-9908
DOI:10.5771/0935-9915-2007-1-5