Nearly 40% of those firms will issue additional options to make up the difference, while 3% will increase cash compensation, 4% will issue new shares or options and 2% will reprice existing options, according to the latest Financial Executives International/Duke University Corporate Outlook Survey.
The quarterly survey of 261 companies also found that
- Half (50%) of companies will reduce overtime in 2001, while another 25% will decrease overtime hours.
- Half of the dividend-paying firms (31% of the total) in the survey will keep dividends constant, while 13% expect to reduce them
- Wages are expected to increase 6.4% at the average firm (with a median growth of 4%) over the next 12 months
- Health care costs are expected to rise, with an average increase of 10.7% expected during the next 12 months