Survey Shows Continuing Broadening of Stock Options

A recently released survey of 200 mostly new economy companies by the consulting firm iQuantic shows that the percentage of high-technology employees getting options was 30% to 50% higher in 1999 than in was four years earlier. Smaller companies are more likely than larger ones to extend options all the way down to non-exempt employees. Companies with larger numbers of non-exempt employees, particularly in the manufacturing and e-commerce end of the technology sector, were less likely to include non-exempt employees than software companies. Nonetheless, participation in stock option plans is growing across the board, with all groups, including non-exempt employees, about 20% to 30% more likely to get options than in 1996. About 20% of non-exempt employees were getting options in about half the companies in 1999. On the other hand, in 1997, the survey found no non-exempt employees got options at hire; in 2000, 60% did, while 75% or more of other groups did. Smaller companies are even more likely to offer new-hire options across the board. This new-hire trend suggests that option programs have dramatically changed in terms of eligibility, suggesting future surveys will show a much higher percentage of current non-exempt employees with options and almost universal participation for higher levels.