Survey of Multinational Companies Shows Changes in Equity Practices

The 2007 Global Equity Incentives Survey from PriceWaterhouseCoopers looked at equity practices among 152 multinational companies. The survey shows that options still are the most popular practice, but companies are only half as likely to offer them as they were in 2003. Restricted stock and restricted stock units are now almost as popular. ESPPs, which were used by 70% of the companies in 2003 fell to 40% in 2006, and grew slightly in 2007. Companies are cutting back on option grants, but, contrary to popular wisdom, the reduction is at all levels, not just broader staff levels.