Stock Options And Why Every Employee Should Have Them

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I would say it depends on the company itself. Where they’ve establish a certain kind of culture that pose on employees owning a share of the company. Before I discuss my views let me first talk about some of the good/bad things when owning stock in the company and also how effects the employee themselves. In the book, “In the Company of Owners: The Truth About Stock Options and Why Every Employee Should Have Them”, they discuss their research of several companies that offered stock options to their employees and the positive results that showed. These results were in in areas in increase productivity, profit, and company growth.8 From this I can see that employers use this as an incentive to motivate their employees, in which it also states that makes the them feel like they got a cut of the cake and feel like their own boss.9 This kind motivation shows that the accomplishments and efforts made by …show more content…

Bishop, Northern Illinois University and Gundars Kaupins, of Boise State University, review the book, “In the Company of Owners: The Truth About Stock Options and Why Every Employee Should Have Them”, impose their argument in stock ownership for employees, which they state: “One argument against partnership capitalism is that higher level managers should get more stock options because they can influence more of the company success. Another argument is that employee owners might be tempted to artificially pump up their stocks. Cutting corners on accounting, avoiding accepted business practices, and violating Federal laws could result in an Enron-like collapse.” This goes the show since everyone is taking a cut, the employer or the employee would get greedy and might take their own action in order give themselves success. Just like with the fall in Enron most of the top executives who had big shares in the corporation turned a blind eye just so they can get a big payout. Which then turned out to be their