Conservative Economic Commentary | Topic: Executive Stock Options

Obamacare Is Billion-Dollar Cash Cow for AARP http://bit.ly/e7c421 #tcot Exploiting our gullible elders ... where the big bucks are. >>
$2 billion union payments found hidden in Obamacare http://bit.ly/gb7Yat #tcot Korruption, Kolusion & Kickbacks in Obama's DC. >>
@Kriskxx Interesting point. I was also much lighter in the Carter years. But then, I was younger, exercised a lot, and lived abroad. >>
@andilinks Whether deflation is worse than inflation depends on who you are. Great Depression was best of times for people with jobs. >>
90% of Americans still have jobs; interest rates, inflation low... Obama hopeful for 2012. #tcot BUT INFLATION IS RISING, RISING >>

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)

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