NCPA - National Center for Policy Analysis

Industries Use Of Stock Options And Bonuses

March 22, 1996

A new study establishes that more and more corporations are offering stock options and bonuses to their rank-and-file employees -- even down to the lowly mailroom clerk. To note just one example, Merck gave 6,200 employees bonuses and 8,300 employees stock options.

The consulting firm Towers Perrin reports that:

  • The proportion of companies offering stock options or bonuses to nonexecutives jumped to 46 percent last year, compared to only 25 percent in 1992.
  • Another 25 percent report they are considering such programs.
  • Many companies award bonuses and options based on individual or department performance.
  • Some 35 percent of companies give out lump-sum payments in lieu of salary increases.

 

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