Stock Options A Growing Trend

More American workers are gaining access to a form of compensation once limited to top executives.

Nearly 19 percent of employees were eligible for stock option grants in 1999, up from 12 percent a year earlier, according to a survey of 1,352 employers by Watson Wyatt Worldwide.

The survey also found that three-fourths of eligible workers received grants last year. Still, the average lowest salary for employees eligible to receive options was $58,100.

“Stock options, once reserved exclusively for senior executives, are steadily being pushed further down the corporate ladder,” said Ira Kay, North American practice director of Watson Wyatt’s human capital group.

Here are other findings from the survey:

* The average grant made to CEOs in 1999 was $3.2 million - five times their average salary.

* For all top management positions surveyed, the average value of the stock options granted was about $681,000.

* Senior executives at U.S. companies received an average increase of 11.4 percent in total cash compensation, including salary and annual bonus, in 1999.

Caviar, anyone?

Good times have allowed corporations to loosen up when it comes to employee expense accounts.

More than 62 percent of chief financial officers polled for Robert Half International Inc. said their companies have increased employee expense allocations compared with five years ago.

According to the study, based on responses from 1,400 CFOs, 20 percent increased allocations significantly during that time frame. Another 42 percent said their allocations had increased somewhat, while 19 percent reported no change, 5 percent decreased somewhat and 3 percent decreased significantly. Eleven percent either didn’t know or didn’t respond to the question.

“Today’s competitive business environment requires companies to pay particular attention to developing and maintaining relationships with clients,” said Robert Half International CEO Max Messmer. “As more organizations benefit from continued economic prosperity and have greater financial resources to devote to expense accounts, they’re going to greater lengths to make a positive impression with business partners.”

A great time to be a college grad

Job prospects for the Class of 2000 could hardly be better.

A survey by Jobtrak.com, a leading online job listing service for college students, MBAs and alumni, showed a 40.3 percent increase in job openings posted in January 2000 vs. January 1999.

Average starting salary was $35,881. Computer and information science majors garnered the top pay - an average of $44,722. Engineering grads are a close second, at $43,740.