"Stock Options, or Not? - Wall Street Journal" - 13 May 2011

Stock Options, or Not? - Wall Street Journal

By SAMITA SAWARDEKAR

Stock options may be gaining popularity in India but
it's unclear if shareholders understand the likely ramifications on a
company's long-term health.

Typically, stock options were used as a way to inculcate loyalty and
retain employees by giving them a stake in the company. During the tech
boom in the U.S. in the 1990s, when garage start-ups operating on a
shoe-string budget were prevalent, stock options were the currency used
to attract talent and pay employees, and unexpectedly it make
millionaires of many geeks.

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