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In 1999, 1.7 percent of all private industry employees received stock options, according to a survey of stock option conducted by the Bureau of Labor Statistics of the U.S. Department of Labor. The proportion of non-executive employees offered stock options ranged from 0.7 percent for those earning less than $35,000 to 12.9 percent for those earning $75,000 and above.

The percentage of employees who received stock options also ranged by industry, from 0.2 percent in nondurable manufacturing industries to 5.3 percent in durable manufacturing industries, and by geographic region, from 1.1 percent in the Northeast to 2.1 percent in the West. After-hire grants-grants offered to employees after the initial hiring (or signing) phase of employment-made up the majority of stock option grants.

Employees in publicly held companies were more likely than other workers to receive stock option grants. For non-executive employees, the percentage ranged by salary, from 2.2 percent of non-executive employees earning less than $35,000 to 26.8 percent of non-executive employees earning $75,000 and above. Overall, 5.3 percent of employees in publicly held companies and 19.6 percent of executives in such firms received stock options.

The study found that 2.4 percent of establishments offered some form of stock options to their employees in 1999. The percentage of establishments that provided stock options ranged by industry, from 0.4 percent in services to 4.8 percent in wholesale and retail trade. The two most common forms of equity compensation plans other than stock options were stock purchase plans and employee stock ownership plans, offered in 4.5 percent and 1.1 percent of establishments, respectively.

Among publicly held companies, 22.1 percent offered stock options, compared with 2.4% for all private companies. The percentage of publicly held companies that provided stock options also ranged by industry, from 5.5 percent in services to 33.9 percent in finance, insurance, and real estate.

The Pilot Survey on the Incidence of Stock Options in Private Industry in 1999 was conducted between February and June of 2000. The survey covered only the incidence of stock options granted during the 1999 calendar year. The survey covers all private industries, except agriculture and private households, in all 50 states and the District of Columbia. The survey results are available at: (www.bls.gov/comhome.htm).

Edited by Steve Tarnoff
Managing Editor, HRHub.com
Starnoff@vertical.net