Stock options, not the best stocking stuffers?
It's time to re-evaluate whether or not compensating employees with stock options is really the best idea. Investors, for their part, need to weigh how outstanding options will affect the value of their investments.
In the 1990s, employee and executive compensation based on stock options became de rigeur, particularly in the tech sector. There was a clear logic behind this method of compensation: Allowing workers some ownership over the fruits of their own labor was one of the best ways to retain the best and brightest employees, as well as tie compensation directly to company performance.