Abstract
Global companies have historically relied on stock options to compensate their workforce. Because of the fallout from recent corporate governance breakdowns, the use of corporate equity in compensation programs now faces new pressures. Furthermore, U.S. and international accounting changes will increase the cost of delivering stock options, forcing companies to rethink how they deliver equity-based compensation. Making these compensation delivery changes is especially challenging for global companies, which must consider a wide array of complex global and local issues before modifying the delivery approach. As companies respond to the changing accounting rules as well as shifting market conditions, they must resist making quick decisions relating to the implementation of equity-based compensation plans. Instead, new delivery approaches must be analyzed in the context of their global limitations and cultural effectiveness. Boardroom actions must be supported by input from the many organizational stakeholders who have responsibility for operating the plan and who will be held accountable for plan costs and effectiveness. With this input, these plans can be structured in a way that achieves a company’s human resource and financial objectives.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
