According to a recent study, the value of stock options given to employees at the nation's largest companies dwindled by roughly 60 percent throughout 2001-04.

A study performed by global consulting concern Watson Wyatt Worldwide said that the total value of option grants over the three-year period plunged from $118 billion to $51 billion.

In 2004, Watson Wyatt said that the value of stock options fell roughly 17 percent, while the study stated that the decline occurred throughout all major industry sectors.

The Watson Wyatt study also found that companies that provided higher total long-term incentive opportunities to their chief executives over the last five years did not outperform those that provided lower-award opportunities. Also, the number of stock options granted to CEOs declined more than 11 percent last year, and by nearly 37 percent between 2001 and 2004.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access