Survey: Tech Companies Running Short Of Options Shares

By John S. McClenahen Some 72% of publicly held technology companies surveyed this past summer by Deloitte & Touche LLP said they expect to run out of stock option shares to grant to employees within two years. Why? Two major reasons: shareholder activism and new U.S. Securities & Exchange Commission rules that require shareholder approval of new equity compensation plans and share increases to existing plans. Nevertheless, broad-based options are still the norm for techies. For example, 69% of the publicly traded tech companies surveyed say at least 90% of their employees are eligible for the options. The survey, conducted in July and August, involved 196 companies, including 87 publicly traded and 88 privately held technology companies.

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