Most Large Companies Not Restructuring Option Grants

A new study of 100 large companies by Watson Wyatt shows that 60% plan no changes in their options programs. Only 4% are repricing, while 19% are canceling with a subsequent reissue (generally six months later). Thirteen percent are accelerating grants, 9% are issuing more frequent grants, and 9% are issuing restricted stock. The study covers both broad-based and executive-only plans.

Copies of the brief study "New Assumptions: Operating in the Current Business Environment: 2001/2002 Strategic Rewards Supplement" are available online at http://www.watsonwyatt.com/.