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Global Considerations

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Stock Options

Companies can use many different methods to entice new employees or reduce the turnover rate. By doing so, the company saves time and money recruiting and training new employees. While many companies do not offer annual bonuses, stock options have become the growing trend for both privately and publicly held companies. (How Stuff Works, 2007) Stock options are given from the employer, which allows the employee to buy a specific number of shares of your company’s stock during a specific time. These options are being offered to employees as a means to attract and keep good employees. They also use these options to make their employees feel like owners or partners in the business. They also use this method to offer compensation beyond an annual compensation. Also, companies that are successful use these options as a built-in incentive for its employees. By aligning the employee’s interest with those of the organization’s, when the stock rises, the employees experience a direct financial benefit

Retirement

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