The 3 Big Lies About Stock Options
Do you own stock options that are also under water? Tech employees from the dot com bubble era may never get to exercise their options (if their companies still exist!). I have never been a fan of stock options, and prefer my bonuses in the form of a real bonus compensation or a transparent shares grant.
While most may still think that stock options can foster worker alignment with company goals, it’s worthy for investors to note why most corporations prefer stock option compensation — because it means they don’t have to be held accountable for it! Confused? Then you must definitely read Forbes’ latest article debunking the big lies about stock options. Those lies are:
1. There is no way to know the expense, if any, of stock option grants.
2. Stock options aren’t an expense.
3. The cost of stock options is already reflected in diluted earnings per share.
The next time your employer tells you how great your stock options are. How will you react? Remember that they’re essentially lying to investors, so why would you want to “invest” in their options?
Related Posts:
- Why Should You Hold Stock?
- Tax Filing Is Coming Soon!
- Yahoo! Debuts Stock Chart Badges
- TheStreet.com Buys Into StockPickr.com Venture
