How Do Restricted Stock Options Work – Restricted Stock As a Compensation Tool | http://bit.ly/i5iwaO

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Restricted stock is coming to a company near you. It is a
non-qualified compensation arrangement that offers both executives and
employees a stake in the company without the high volatility of option
values. Last year Microsoft announced that its employees would
henceforth receive restricted stock units (RSUs) in lieu of stock
options. Amazon, Altria, and Progressive Corp have similarly begun to
issue restricted stock to rank and file employees. More than 60% of
companies surveyed by Mercer Human Resource Consulting in April 2003
said they were either introducing restricted shares or expanding their
current program. There is a sea change in compensation afoot… and much
to learn about it. How Do Restricted Stock Options Work

Stock market declines since 2000 have left many stock option programs
under water. As much as 50% of outstanding stock options would have no
value if exercised today. If recent trends continue, there is a good
chance that your employer may substitute...