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| Stock options
have become a common method of enhancing employee compensation. For many
companies, it has become routine to grant key employees qualified stock options
on an annual basis. Under these options, the company guarantees to sell
shares of the company's stock to the employee at some future date (possibly
going out ten years), but locked in at the stock's current price.
Obviously, if the stock increases in value, as the company and employee both
hope, the employee will realize a gain as soon as the options are exercised. However, the value of this benefit as of the date of award is not always obvious. Vocational Economics offers knowledge of compensation plans and the underlying financial theory to accurately adjust the employee's earning capacity to reflect a true value for these benefits. Last Modified: Thursday August 07, 2003 09:14 AM |
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