Does it benefit companies to give stock options to every employee or just executives?

http://feedproxy.google.com/~r/bakadesuyo/~3/MFBI9dsClIQ/does-it-benefit-companies-to-give-stock-optio#ixzz1Vu4LdxLd

by Eric Barker

Stock
options have a positive effect on firm performance when they are
granted to executives, but giving options to lower ranking employees
seems to have no effect on the bottom line according to a new study
co-authored by Stanford Business School Professor Ron Kasznik.  
“Our
findings provide evidence that options provide incentive effects at the
executive level that are sufficiently large to be reflected in firm
performance, but no evidence for similar incentive effects for
non-executive employees,” wrote the co-authors: Nicole Bastian
Johnson of the Haas School of Business at UC Berkeley,  David Aboody of
UCLA’s Anderson School of Management and Kasznik.
And:
Kasznik
and his colleagues also found that companies that had re-priced options
for only executive-level employees significantly outperformed the
companies that had not repriced at all. But firms that repriced options
for only non-executive employees did not outperform the control group.

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