Do you look at stock option as a retention tool for employers orincentive for employees?
It depends on the industry. For example, in the high-tech telecommunication industry companies tend to use stock options as a retention tool and also as an incentive. But the incentive is incidental. Also, companies sometimes feel compelled to give the options because their competitors are giving them. So retention is the primary thing. Employees look at it as an additional compensation. They may use it over a period of time to make payments towards their homes or for any other purpose. Basically they use it as cash. So, while companies are implementing these programmes to create ownership, it does not happen that way with the employees. So do you see stock option as a trap for the employee? If it’s on top of all the other compensation, it is not a trap. In that case, it’s a win-win situation for the employees because they’re not losing anything. But it could become a trap if the stock option is part of the total compensation. In a situation like that, if the stockprice plunges, the va
