Conservative Economic Commentary | Topic: Executive Stock Options

The best argument against the death penalty: Horrid government inefficiency. Miami CSI is fantasy, not real life. #tcot >>
There is NO 'progressive conspiracy'... Their plans are not SECRET. Alinsky even published the rules, now taught in school. #tcot >>
The real evil of Obama: Creating terrible economic incentive to work for the government, not for oneself. #tcot >>
With public servant earning double private workers, mothers will teach their children to be public servants, not entrepreneurs. #tcot >>
Each year w/Obama puts us deeper & deeper in the underemployment hole. Entrepreneurs are sitting on their wallets. #tcot >>

Subject: executive stock options

An employee stock option is a call option on the common stock of a company, issued as a form of non-cash compensation. Restrictions on the option (such as vesting and limited transferability) attempt to align the holder’s interest with those of the business’ shareholders. If the company’s stock rises, holders of options generally experience a direct financial benefit. This gives employees an incentive to behave in ways that will boost the company’s stock price.
Employee stock options are mostly offered to management as part of their executive compensation package. They may also be offered to non-executive level staff, especially by businesses that are not yet profitable, insofar as they may have few other means of compensation. Alternatively, employee-type stock options can be offered to non-employees: suppliers, consultants, lawyers and promoters for services rendered. Employee stock options are similar to warrants, which are call options issued by a company with respect to its own stock. (Wikipedia Jan 2010)

Phony financial reform