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Employee Stock Options as Retention Strategy
Human Resources » Attrition and Retention

Chrm Message From: tiwarirekha Total Posts: 24 Join Date: 29/03/2007
Rank: Executive Post Date: 21/05/2007 08:26:28 Points: 120 Location: United States

Dear Colleagues,

We in the process of planning for the above exercise as part of our retention strategy. I however have questions regarding certain issue which are outlined below.

* What are the methods used in share allocation? - Do you give equal shares to all the people?

* After how long should employee be allowed to exercise their shares? My experience with some of these schemes is that people wait till they can exercise their options and then leave. If you make the period too long people become dissatisfied and leave before exercising their options.

Could I please have samples / Documents others are currently using.

Thanks & Regards

Rekha Tiwari

Chrm Message From: i4hr Total Posts: 1 Join Date: 29/03/2007  
Rank: Beginner Post Date: 18/11/2009 14:35:17 Points: 5 Location: United States

The Employee stock option scheme is a proposal to employees and not a mandatory. it depends on employees whether accept it or not. While designing the ESOC company needs to think about its purpose: is the plan intended to give all employees stock in the company or to just provide a benefit for some "key" employees? Does the company wish to promote long-term ownership or is it a one-time benefit?

There is a mini. 1yr. and max. 8 yrs. time period for exercising the option.
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