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Benefits May 1, 2002
Firms Rethinking Stock Compensation
May 1, 2002 (PLANSPONSOR.com) - A growing number of
large US employers are rethinking their use of stock in
compensation programs, according to a new survey.
Reported by Fred Schneyer
A recent Hewitt Associates study of some 200 large US employers found that 34% of companies polled said they would cut the proportion of compensation delivered by stock options or other stock forms. More than half of the firms predicted no change and 14% planned a company stock increase in pay plans.
In the investment information arena, Hewitt found that:
- 42% of companies plan to educate their employees more about prudently investing in company stock,
- a third of the companies will provide more information about how worker performance affects the value of company stock shares, and
- 35% will communicate more with employees about company stock as part of a compensation package
The study also found that about a third of the companies plan to increase their discounted or no-fee stock-purchase programs. About 16% said they plan to cut back on those programs while 56% anticipated no change.
Hewitt surveyed 202 major US companies.
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