One Way to Settle the Controversy over Stock Options: Eliminate Them

In the wake of news reports about compensation excesses in U.S. companies, Cendant recently announced that it expected to reduce the issuance of employee stock options and use grants of restricted stock instead. That decision has placed Cendant – an $8.9 billion real estate and travel conglomerate – in the vanguard of a movement to reject option-based incentives and return to a more traditional way of rewarding performance. How valid is that approach, and will other companies follow Cendant’s lead?

Like this content? Why not share it?
Share on FacebookTweet about this on TwitterShare on LinkedInBuffer this pagePin on PinterestShare on Redditshare on TumblrShare on StumbleUpon

Leave a Reply Cancel reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.