When giving someone for advice, I'm sure many of us do not say, “Do this! Choose that!” This is definitely unwise of you; however, an individual should give his/her friend options. In the same light, managers should be able to perform more efficiently and effectively due to the wide array of options to choose from. Management stock options should be seen in a different perspective especially since management stock options are a prime example of issuing stock shares at below-market price.. Many publicly owned corporations grant their top-level executives management stock options in addition to their salaries and other compensation benefits. Let us take a look at how John A. Tracy is his article, “Looking at Management Stock Options” described management stock options: A managementstock option gives a manager the legal right to buy a certain number of shares at a fixed price starting at some time in the future — assuming that conditions of continued employment and other requirements are satisfied. Usually the exercise price (also called the strike price) of a management stock option is set equal to or higher than the market value of the stock shares at the time of grant. So, giving a manager a stock option does not produce any immediate gain to the manager. If the market price of the stock shares rises above the exercise price of the stock option sometime in the future, the stock options become valuable; indeed, many managers have become multimillionaires from their stock options.
Let us now take a deeper look at the theory that the “total value of the business is higher than it would have been without the management stock options because better managers were attracted to the business or managers performed better because of their options. The stockholders end up better off than they would have been if no stock options had been awarded to the managers.”
Now let us take a look at the Federal Unemployment Tax. The employers contribute to the fund, and states also collect taxes to fill their unemployment fund reserves. It would be beneficial to have fidelity bonds which is a type of insurance — typically carried by employers for their employees — that helps guard against theft and reduce the risk of loss.
Considering the options are indeed vital in the pursuit of anything.