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Microsoft to award stock instead of options
Seattle, July 09: Microsoft Corp will start giving shares of stock to employees instead of granting stock options and will record the expenses on its books.
Seattle, July 09: Microsoft Corp will start giving shares of stock to employees instead of granting stock options and will record the expenses on its books.
The changes announced yesterday will give employees
actual shares of Microsoft stock over time instead of options,
which give holders the right to purchase stock at a set price.
Employees generally are given options to purchase stock at
prices tied to the day they start work with Microsoft.
With the stock markets struggling to claw out of a three-year bear market, stock prices are considerably lower than in the late 1990s and 2000, and many have complained their options are worthless. The change, which goes into effect in September, will help Microsoft retain and attract high-quality employees, said Steve Ballmer, Microsoft chief executive.
"Our compensation philosophy is simple," Ballmer said. "We want to be a magnet for the best people by paying smarter. We want to attract and retain employees by offering real ownership and great long-term financial incentives.
"And we want to ensure that our senior employees' total compensation is even more closely linked to growth in the number and satisfaction of our customers," he said. Microsoft announced the change after the close of markets. Its shares fell 22 cents in after-hours trading, after finishing the regular session up 28 cents at USD 27.70 on the Nasdaq stock market.
Bureau Report
With the stock markets struggling to claw out of a three-year bear market, stock prices are considerably lower than in the late 1990s and 2000, and many have complained their options are worthless. The change, which goes into effect in September, will help Microsoft retain and attract high-quality employees, said Steve Ballmer, Microsoft chief executive.
"Our compensation philosophy is simple," Ballmer said. "We want to be a magnet for the best people by paying smarter. We want to attract and retain employees by offering real ownership and great long-term financial incentives.
"And we want to ensure that our senior employees' total compensation is even more closely linked to growth in the number and satisfaction of our customers," he said. Microsoft announced the change after the close of markets. Its shares fell 22 cents in after-hours trading, after finishing the regular session up 28 cents at USD 27.70 on the Nasdaq stock market.
Bureau Report