Summary
More American companies, especially start-ups and those in the technology industry, are offering broad-based employee stock options (ESOs) as part of their compensation packages. As the market recovers, many workers view stock options as a way to get a piece of their company’s action and share a stake in its overall performance. But what’s in it for employers? Laura Lindsey, Ilona Babenko and Yuri Tserlukevich of the W. P. Carey School’s department of finance have researched aspects of employee stock options and found that tax advantages and employee engagement are among the benefits to companies.