Survey of Technology Companies Show Changes in Option Plans

A 2005 Top Five survey of 42 major technology companies in Silicon Valley reports that 74% are considering replacing some of their options with other long-term incentive vehicles, with the same number considering reducing the size of their grants. Half the companies are considering reducing eligibility as well. Restricted stock is the most common substitute, being looked at by 55% of the companies. Only 3% of the companies plan to drop their ESPPs, while look-back features and discounts may be reduced--but this is a decision companies have generally not yet made. The results are described in the April issue of WorkSpan, the magazine of WorldatWork.