Few technology companies are totally removing stock options from their executive incentive-pay packages, indicates a study by DolmatConnell & Partners. "While firms are generally employing more restricted stock and performance-based LTI [long-term incentive] plans -- firms are nearly always combining such awards with stock options," says the Waltham, Mass., consulting firm.
Indeed, 2005 was the first year a majority of technology firms put together incentive packages that went beyond stock options alone. While 34% used only stock options, 53% chose a "portfolio" of awards. The study covered the 100 largest publicly held technology firms.