The authors found that companies with broad-based stock option plans (here, defined as those where most nonmanagement employees receive option grants) had statistically significant higher productivity levels and annual growth rates than public companies in general and their peers.
This paper analyses data on 490 companies with broad-based stock option plans, matched to data from Compustat in order to compare their characteristics and performance to that of other public companies.
We examine labor productivity in small, medium, and large firms that broadly distribute stock options under starkly different market conditions – during the bull (1995-1997) and bear (2000-2002) stock markets. We find greater labor output in both upward and downward markets in all firm size categories, with the exception of small firms in a declining market, where the productivity is also greater, but the statistical significance of the result is weak.
This paper examines the productivity effect of the adoption of executive and broad-based stock options. The findings include a positive impact on productivity after the introduction of both executive and broad-based stock options.
In this paper, we use empirical analysis to analyze company characteristics associated with the adoption and maintenance of broad-based stock option plans. Overall, our results provide support to the claim that higher monitoring costs prompt firms to adopt and maintain employee stock option plans.
Research on employee ownership has focused on questions of productivity, profitability, and employee attitudes and behavior, while there has been little attention to the most basic measure of performance: survival of the company. This study uses data on all U.S. public companies as of 1988, following them through 2001 to examine how employee ownership is related to survival.
There is a significant gap in the incidence and development of employee ownership between the European Union (EU) and the US when both sectors are examined.
This paper compares the performance of 229 `New Economy’ firms offering broad-based stock options to that of their non-stock option counterparts. A simple comparison of these firms reveals that the former have higher shareholder returns, Tobin’s q and new knowledge generation.
Until recently, stock options were primarily reserved for senior executives and selected managers in most American corporations. In the last decade or so, however, stock options have become part of the compensation package for an increasing number of rank-and-file employees.
This report compares the performance of corporations that offer their employees broad-based stock option plans to those that do not offer their employees broad-based stock option plans.
This paper summarizes the findings from over 50 large-sample empirical studies that have been done on employee ownership and broad-based stock option plans in the past 25 years, covering studies on plan adoption, employee attitudes and behaviours, firm performance, and employee wages and wealth.