Silicon Valley Option Use Declines

The number of households with one or more wage earners holding stock options dropped from 33% in 2000 to 25% in 2002. In neighboring San Francisco County, options use dropped even more, where 20% of the households had options in 2000, but only 12% did in 2002. In San Mateo County (between San Jose and San Francisco), however, options prevalence increased from 23% to 25%. Over the last two years, the optionees have become somewhat older and have a 22% bigger paycheck (meaning options are going to higher income people). Most of the change can be attributed to the shifting fortunes of the region's tech economy, which has seen hundreds of smaller companies go out of business while many more stable companies have reduced employment. With few companies hiring, fewer lower-paid employees are getting options. Still, the numbers suggest a remarkably high prevalence of options in the area, considering many households do not have an employed person or someone who works for an employer who even can offer options (such as working for a government or nonprofit agency). The data were collected by the Gallup Organization for the San Jose Mercury News (12/12/02).