Sharing
The Wealth Through Stock Options: Facts & Figures
American Benefits Council
In the past, only company executives received stock options.
But today, the opportunity to enjoy equity ownership is spreading throughout a company's
workforce. Below is a sampling of survey data that illustrate this trend. For more
information, contact either James Delaplane, the Councils Vice President, Retirement
Policy, or John Scott, the Council's Director, Retirement Policy, at 202-289-6700.
Data on Employers Offering Stock Options
In a 1997 survey, the National Center for Employee Ownership (NCEO)
reported that among 1,100 public companies concentrated in the electronics industry 53%
provided options to all employees. Of companies with 500 to 999 employees, the
study found that 51% offered options to all employees, as compared with 30% in
1994. 43% of companies with 2,000 to 4,999 employees offered options to all
employees as compared with 10% in 1994. Similarly, 45% of companies with more than 5,000
employees offered stock options to all employees, up from 10% in 1994 (Employee
Stock Options Fact Sheet, National Center for Employee Ownership, 1997).
A 2000 survey by the National Association of Stock Plan Professionals
and PricewaterhouseCoopers reported that 44% of 345 large domestic companies with stock
option plans made grants to all employees, including hourly employees (The 2000
Stock Plan Design and Administration Survey, National Association of Stock Plan
Professionals, 2000).
According to a 1999 William M. Mercer survey of 350 major industrial and
service corporations, 39.4% of those surveyed had a broad-based (at least 50% of employees
being eligible) stock option plan and 18% made grants under such plans. These figures
compare with 17% of companies offering broad-based stock option plans and 5.7% making
grants in 1993 (Broad-based Stock Options - 1999 Update, William M. Mercer, Inc.,
1999).
From a 1998 Hewitt survey, over 66% of large companies gave
options to some portion of their non-executive workforce. Of this group, 26% granted
options to all their workers and another 15% gave options to at least half the
employees (1998 Hewitt Survey Findings: Broad-based Stock Ownership Opportunities in
Large U.S. Companies, Hewitt & Associates, 1998).
Data on Employees Eligible for Stock Options
From a 1999 survey of large employers by Watson Wyatt Worldwide, 19% of
employees were eligible for stock option grants (1999/2000 Survey of Top Management
Compensation, Watson Wyatt Worldwide, 1999).
According to the NCEO, more than 6 million non-executives receive
stock options. The trend is towards more non-managers receiving stock options. In the
biotechnology and computer programming industries, stock option holdings were more
widespread among rank-and-file employees (55%) than among managers (45%) (Current
Practices in Stock Option Plan Design, National Center for Employee Ownership, 1998).
In the same NCEO survey, the average option grant value was $37,000 for
professional employees, $41,000 for technical employees, and $12,500 for administrative
employees.
The Federal Reserve reported that in 1998 49% of all families had,
directly or indirectly, stock holdings, up from 31.6% in 1989 (1998 Survey of Consumer
Finances, The Federal Reserve, 1999).
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Advancing the
business of technology, AeA is the nation's largest high-tech trade association. AeA has
more than 3,500 member companies that span the high-technology spectrum, from software,
semiconductors and computers to Internet technology, advanced electronics and
telecommunications systems and services. With 18 regional U.S. councils and offices in
Brussels and Beijing, AeA offers a unique global policy grassroots capability and a wide
portfolio of valuable business services and products for the high-tech industry. AeA has
been the accepted voice of the U.S. technology community since 1943.
This page was last updated on 05/09/02. |