In April 2002, 4,636 surveys
were sent to a random sample of WorldatWork members. 529 responses were received,
an 11% response rate. Both the response rate and sample are representative of
WorldatWork’s membership as a whole.
1. Please indicate whether
your organization is . . .
Publicly
traded
56%
Privately
held
33%
Government,
academic, or not-for-profit
12%
2. Does your organization
grant stock options to some or all employees?
Yes
93%
No
7%
3. Which employee groups were eligible to receive stock options in 2000 and
which employee groups actually received stock options in 2000?
Eligible
in 2000
Actually
received in 2000
Yes
No
Yes
No
Executive
99%
1%
99%
0%
Upper Management
98%
2%
99%
0%
Middle Management
84%
16%
99%
0%
Supervisors
61%
39%
93%
7%
IT Staff
62%
38%
96%
4%
Other Professional
Staff
62%
38%
96%
4%
Sales
64%
36%
95%
4%
Technical Staff
58%
43%
96%
4%
Administrative Staff
39%
61%
92%
8%
Part-time
28%
72%
97%
3%
4. Which employee groups were eligible to receive stock options in 2001 and
which employee groups actually received stock options in 2001?
Eligible
in 2001
Actually
received in 2001
Yes
No
Yes
No
Executive
98%
2%
96%
3%
Upper Management
98%
2%
96%
3%
Middle Management
85%
15%
97%
2%
Supervisors
63%
37%
91%
7%
IT Staff
66%
34%
94%
6%
Other Professional
Staff
65%
35%
94%
6%
Sales
67%
33%
93%
5%
Technical Staff
59%
41%
94%
5%
Administrative Staff
39%
61%
89%
10%
Part-time
29%
71%
92%
6%
5. Which employee groups are eligible to receive stock options in 2002 and which
employee groups will actually receive stock options in 2002?
Eligible
in 2002
Actually
received in 2002
Yes
No
Yes
No
N/A
Executive
98%
2%
83%
4%
9%
Upper Management
97%
3%
83%
4%
10%
Middle Management
86%
14%
83%
5%
10%
Supervisors
63%
37%
77%
12%
8%
IT Staff
65%
35%
75%
12%
9%
Other Professional
Staff
65%
35%
77%
11%
8%
Sales
67%
33%
76%
9%
10%
Technical Staff
60%
40%
77%
8%
10%
Administrative Staff
37%
63%
75%
14%
7%
Part-time
28%
72%
79%
12%
2%
6. Overall, what percentage of your organization's employees received stock
option grants in 2000, 2001, and 2002? (If all employees did, please indicate
100%)
Mean
Median
n
Upper
95% CI
Lower
95% CI
Max
Min
SD
SE
mean
2000
34.6
13.0
249
39.3
29.9
100
0
38.2
2.4
2001
36.0
15.0
241
40.9
31.1
100
0
38.8
2.5
2002
projected:
32.9
12.0
234
37.8
28.0
100
0
37.6
2.5
7. In your compensation plan, what percent of the overall value of the compensation
mix was represented by stock options in 2000, 2001 and 2002?
Mean
Median
n
Upper
95% CI
Lower
95% CI
Max
Min
SD
SE
mean
2000
15.0
10.0
104
18.1
11.9
80
0
15.9
1.6
2001
14.9
10.0
104
17.8
12.0
80
0
15.4
1.5
2002
projected:
15.9
10.0
103
18.8
13.0
80
0
15.5
1.5
8. In 2002, which of the following determine eligibility for stock option grants
in your organization?
Yes
No
a.
Employee category (e.g., manager, professional, non-exempt)
67%
34%
b.
Salary grade or level
76%
24%
c.
Individual performance
67%
33%
d.
Group, unit, or organization performance
17%
83%
e.
Individual value in labor market
23%
77%
f. Discretion
of organizational leadership
65%
35%
9. Please indicate whether the value of your organization's stock during the
past 12 months (March '01 - March '02) has:
Increased
118
45%
Decreased
93
36%
Stayed about the same
49
19%
9a. If decreased, which of the following have you engaged in during the past
12 months to counter the decline in the value of stock options that employees
hold? (Check all that apply.)
Increased annual cash
incentive
6%
Increased long-term
cash incentive
1%
Increased use of restricted
stock
5%
Increased stock option
grant size
27%
Re-priced stock options
8%
10. How has your organization changed its use of the following types of options
in 2002?
More
use
No
change
Less
use
a.
Options priced at fair market value
16%
78%
6%
b.
Performance contingent options
33%
63%
4%
c.
Performance accelerated options
12%
82%
6%
d.
Premium priced options
7%
93%
0%
e. Discounted
options
7%
89%
4%
11. Which of the following have been either major or minor factors in the changes
to your organization's stock option practices since 2000?
A
major factor
A
minor factor
Not
a factor
a.
Changing stock market valuations (for example, dealing with underwater
options)
25%
20%
55%
b.
Changing employee demand for options
12%
32%
56%
c.
Changes in international accounting standards
6%
16%
78%
d.
Changes in competitor use of options
16%
31%
53%
e.
The "dot com" crash reduced employee interest in options
3%
17%
81%
f.
Value of options in attracting and retaining employees
41%
31%
28%
g.
Value of options in motivating employees
42%
30%
28%
h.
Concerns about the effects of the option program on shareholders (dilution,
overhang, etc.)
32%
35%
33%
i.
Effects of the Enron and other accounting scandals
2%
15%
83%
j. Desire
to make up for base salary reductions or cash incentives that did not
pay off
10%
21%
69%
12. Comparing 2000 to today, how important are and were each of the following
as goals of your organization's stock option plan?
2000
2002
Major
Goal
Minor
goal
Not
a goal of the plan
Major
Goal
Minor
goal
Not
a goal of the plan
a.
Attracting and retaining talent
80%
17%
3%
76%
20%
4%
b.
Motivating employee performance
74%
21%
5%
78%
18%
5%
c.
Creating a culture of ownership
59%
31%
10%
62%
29%
9%
d.
Educating employees about the business
15%
41%
43%
21%
40%
39%
e.
Conserving cash by substituting options for cash compensation
11%
28%
61%
15%
27%
58%
f.
Gaining the finance and tax advantages of stock options
17%
45%
38%
18%
44%
37%
g.
Focusing employee attention on organizational performance
65%
26%
9%
72%
20%
8%
13. Please indicate the strength of your agreement or disagreement with each
of the following statements
Strongly
Disagree
Disagree
Neither
agree nor diagree
Agree
Strongly
agree
a.
Our eligible employees do not know how to estimate the value of their
options
7%
31%
17%
37%
9%
b.
My organization does a good job of teaching employees about the stock
option plan
9%
31%
29%
26%
6%
c.
Eligible employees need more information about how to influence the share
price
2%
14%
22%
49%
13%
d.
Employees do not appreciate the long-term value of the options they hold
4%
27%
22%
35%
11%
e.
Most employees prefer stock options to cash in incentive payments
14%
48%
32%
4%
2%
f. The
vast majority of employees who receive options exercise them immediately
after they vest
11%
38%
31%
17%
4%
14. How do you determine the value of stock options at the time of the grant?
Black-Sholes
41%
Fair market value
53%
Growth assumption
discounted to present value
6%
15. For each employee group, please indicate the change in the number of options
granted in 2002 vs. 2000.
More
in 2002
Fewer
in 2002
Same
in 2002 as in 2000
Executive
47%
25%
28%
Upper
Management
42%
26%
32%
Middle
Management
38%
26%
36%
Supervisors
33%
28%
39%
Professional
Staff
29%
32%
39%
IT
Staff
29%
32%
39%
Sales
35%
27%
38%
Technical
Staff
31%
27%
41%
Administrative
Staff
28%
33%
39%
Part-time
employees
25%
30%
45%
16. For each employee group, please indicate the change in the value of options
granted in 2002 vs. 2000.
