Headlines about "Stock options"

Gathered from the web by the editors at BenefitsLink.com.
Stock Options Opened for 'Call Writing'
Excerpt: "Briefly, the SEC approved a rule on June 17, 2009, which would permit public companies to allow their employees to use vested stock options as collateral for writing exchange-listed calls. Permitting this activity would require some affirmative actions by the Company, such as revise plan documents and putting in place guidelines. A company also should consider whether this activity is consistent with its stock ownership guidelines." (Michael Melbinger via Winston & Strawn LLP)

Employee Ownership Update for July 1, 2009
NCEO Executive Director Corey Rosen, in his first column on the newly revised NCEO Web site, reports on what's new in the employee ownership world: SAIC changed its stock structure to eliminate the 10-to-1 voting rights that preferred shares held by employees were given when the company went public, the SEC issued a rule allowing employees with vested stock options to use them as collateral to purchase call options, and the NCEO is soliciting material for a book on what not to do with an ESOP. (National Center for Employee Ownership)

Do Stock Options Have a Future? (PDF)
3 pages. (WorldatWork via Frederic W. Cook, Inc.)

Employee Ownership Update for May 15, 2009
NCEO Executive Director Corey Rosen discusses the impressive 2003-2008 stock price growth of ESOP companies in a recent NCEO survey of executive compensation; stories that your customers tell about you, illustrated by an anecdote from Southwest Airlines President Emeritus Colleen Barrett; a new paper saying that the stock options backdating scandal caused significant shareholder damage; and the Ownership Thinking conference. (National Center for Employee Ownership)

[Guidance Overview] Compliance Considerations and Issues Surrounding the Repricing of Stock Options.
Excerpt: "The accounting for stock options (including re-pricings) is governed in the United States by FAS 123(R). Under this standard, the charge for any new options is only for the incremental value. Thus, in a value-for-value exchange (or one that is less favorable to the grantees), the re-pricing may be a shareholder-neutral event from an accounting expense standpoint." (JPMorgan Chase & Co.)

Using Premium-Priced Options (PDF)
Page 9 of 12 pages. (Milliman)

[Guidance Overview] Option Repricing and Exchanges
Excerpt: "Even many privately held-companies have seen the fair market value of their stock decline, causing their outstanding options to be underwater, as well. As a result, those now valueless options no longer serve their incentive purpose, and affected companies are looking for ways to restore those incentives to motivate and retain employees. There are three principal approaches to try to restore those incentives: issue new options (or other incentive awards, such as restricted stock); reprice underwater options (that is, make the exercise price no less than the current fair market value); or offer cash, new options or other incentive awards in exchange for outstanding underwater options (or offer to materially amend terms of the underwater options other than the exercise price -- a material amendment generally is treated the same as an exchange)." (Seyfarth Shaw LLP)

[Guidance Overview] Revisiting Underwater Options
Excerpt: "Unprecedented volatility has been wreaking havoc on equity programs, placing many, if not all, stock options underwater. As a result, many companies are weighing whether to take action on underwater options. This Perspective, the third in Mercer's 'Weathering the Storm' series, provides a framework for evaluating underwater options and determining if actions are appropriate. The article explores different approaches to exchanging underwater options; discusses legal, shareholder approval and communication issues; and highlights findings from Mercer's review of about 50 recent option exchanges." (Mercer LLC)

New Publication on Equity Compensation in a Down Market
The NCEO presents excerpts from its new publication Equity Compensation in a Down Market: Repricing, Accounting, ESPP, and Employee Communications Issues, a 63-page issue brief. (National Center for Employee Ownership)

[Guidance Overview] Repricing Underwater Stock Options
Excerpt: "In this article, we discuss the more philosophical pros and cons of re-pricing these underwater options, and to the extent that there is some sort of exchange, what techniques are available for determining the exchange methodology." (JPMorgan Chase & Co.)

Employee Ownership Update for April 1, 2009
NCEO Executive Director Corey Rosen discusses FASB's reconsideration of whether ESOP-held shares that are mandatorily redeemable upon the occurrence of an event certain to occur are liabilities; French executives who gave up stock options; cash incentives; and, as an April 1 special, a new system that attaches to the ear and detects brain wave patterns in executives in response to various pay systems. (National Center for Employee Ownership)

Stock Options Adjusted at Some Public Companies After Share Prices Fall
Excerpt: "Executives at dozens of public companies, including Starbucks, Google, Intel and smaller enterprises like Composite Technology, are taking steps to lower the prices that their employees would have to pay to convert options into stock. The moves are usually described as important for retaining employees, especially as stock options that vest over several years look utterly worthless in the current market. With prices plunging across a variety of industries, companies also often assert that stock price movements are not really a reflection of employee performance." (The New York Times; free registration required)

Intel Seeks to Reprice Worthless Stock Options
Excerpt: "Intel Corp . . . is seeking permission from its shareholders to exchange worthless employee stock options, a controversial move that the world's biggest chip maker says is needed to retain critical staff. Under the plan, which is open to all employees excluding senior executives, Intel would exchange underwater stock options -- whose exercise prices are above the current stock price -- for ones carrying carry a lower exercise price." (Reuters via The New York Times; free registration required)

[Guidance Overview] Employee Benefits Issues to Consider in a Reduction in Force
Excerpt: "As unfortunate as it may be, sometimes the only effective way to increase a company's bottom line during an economic recession is a reduction in force (RIF). The economic analysis should, however, consider much more than just the terminated employees' salaries. Other considerations include nonqualified deferred compensation, stock plans, bonuses, severance pay, retirement plans, health and welfare plans, and FSAs. This article, while not exhaustive, discusses many of the issues an employer may face and thus should consider when performing the economic analysis of a potential RIF." (Deloitte via BenefitsLink.com)

[Guidance Overview] A Five-Year Long Lesson in Plan Drafting for Stock Options
Excerpt: "[The case of AT&T v. Lillis] took another turn last week as the Delaware Supreme Court ruled that a state trial court had properly considered AT&T's admissions in its pleadings that stock options of former directors and officers that were cashed out after a merger between AT&T Wireless Services Inc. and Cingular Wireless LLC may have included the future time value of those options." (Michael S. Melbinger via Winston & Strawn LLP)

[Guidance Overview] Underwater Stock Options ? What are the Alternatives?
Excerpt: "The recent economic downturn has left a significant number of options far out-of-the-money (underwater). Some awards are so deep underwater that it might be unlikely for these options to become in-the money again before expiration. Seventy-two percent of the companies in the Fortune 500 are facing the challenge of underwater options, based on Equilar's analysis of average exercise prices in mid-December of 2008. Two broad schools of thought have emerged on the strategic compensation direction best suited for navigating this obstacle: Leave the current awards unchanged, reflecting returns to shareholders. Exchange underwater options for new options or another form of compensation of value to the employee to address top talent retention problems." (Deloitte Development LLC)

Employee Ownership Update for March 13, 2009
NCEO Executive Director Corey Rosen discusses a new survey of what companies plan to do with equity compensation; how ESOPs are still a good idea for employee retirement security; a newly endowed chair for employee ownership that has been established at Rutgers; and applying for the Principal 10 Best Companies for Financial Security award. (National Center for Employee Ownership)

[Guidance Overview] Top 10 Things You Need to Know for Option Exchanges Involving International Employees (PDF)
5 pages. Excerpt: "Underwater options are a common occurrence in today's stock market. As a result, many companies are considering offering an option exchange program, however, most companies focus on the U.S. considerations and neglect to consider how this may affect their non-U.S. employees. This article discusses the top 10 issues that should be carefully considered before making a global exchange offer." (Baler & McKenzie)

Issue Brief: The State of Employee Ownership 2009
The NCEO presents excerpts from The State of Employee Ownership 2009, an issue brief that reviews the number of plans, participants, and assets for ESOPs and similar plans, broad-based stock options, 401(k) plans with company stock, and employee stock purchase plans. It also reviews the most relevant research on employee ownership and corporate performance and recent political and legal developments in the field. (National Center for Employee Ownership)

A Statistical Profile of Employee Ownership
The NCEO has released the 2009 update of its Statistical Profile of Employee Ownership. The Web page with the data also explains the methodology behind the new estimates of the number of ESOPs. (National Center for Employee Ownership)

A Statistical Profile of Employee Ownership
The NCEO has released the 2009 update of its Statistical Profile of Employee Ownership. The Web page with the data also explains the methodology behind the new estimates of the number of ESOPs. (National Center for Employee Ownership)

Employee Ownership Update for Feburary 17, 2009
NCEO Executive Director Corey Rosen discusses the predominance of ESOP and other employee-owned companies in Fortune magazine's 100 Best Companies to Work For in America list; Bureau of Labor Statistics data indicating that the percentage of workers receiving stock options in 2008 was unchanged from previous years; and data from Radford Surveys on equity award exchange patterns. (National Center for Employee Ownership)

Compensation Objectives and the Organization-Wide Use of Non-Cash Pay
Excerpt: "This study investigates the effects of attraction, retention, and incentive objectives on the organization-wide use of two non-cash pay elements: benefits and broad-based equity (stock and stock option) grants. Recent economic theories lead to conflicting implications for the use of various non-cash pay elements in achieving these objectives. Data from the European operations of 185 large firms indicate that benefits are primarily provided for retention purposes. Broad-based option grant eligibility is positively associated with incentive and attraction purposes, but negatively associated with retention objectives, despite claims that options' vesting provisions enhance their retention advantages. Stock grant eligibility is also positively associated with incentive objectives, but has little relation with either attraction or retention objectives." (Social Science Research Network)

[Guidance Overview] Bringing Underwater Stock Options Back to the Surface (PDF)
4 pages. Excerpt: "Many companies saw their stock price significantly decline in 2008. As the result of these declines, employees of these companies may now hold stock options that are severely underwater -- that is, the exercise price of the stock option exceeds the fair market value of the underlying stock. . . . This update briefly describes underwater stock option exchanges as well as some of the hurdles that companies will face in implementing these exchanges." (Dechert LLP)

New book: Advanced Topics in Equity Compensation Accounting
The NCEO presents excerpts from its new book, Advanced Topics in Equity Compensation Accounting. The book presents a selective and detailed treatment of some of the most crucial topics in accounting for stock options and other equity compensation plans. The author is noted expert Takis Makridis. (National Center for Employee Ownership)

Underwater Options Exchange Should Exclude Executives, Maintain Value
Excerpt: "A new analysis from Aon Consulting's Radford Surveys + Consulting found exclusion of board and named executive officers (NEOs) and a value-neutral exchange rate were design features of underwater stock option exchange proposals that figured most prominently in gaining approval." (PLANSPONSOR.com; free registration required)

Google Offers to Exchange Employee Options
Excerpt: "Google employees will have a chance to exchange underwater stock options for new, at-the-money options under a program intended to increase retention. Several features of Google's offer are far more generous than typical option exchanges -- for example, a one-for-one exchange ratio and no minimum out-of-the-money amount for determining option eligibility. While Google's program is receiving much attention, it may not serve as a model for other companies with underwater options -- at least if their shareholders must approve the option exchange." (Mercer LLC)

[Guidance Overview] Presentation: Dealing With Underwater Options: Option Repricings, Option Exchanges, Option Buy-Outs Webcast (PDF)
28 pages. Excerpt: "Three techniques for dealing with underwater options: 1. Option Repricing: The underwater option is cancelled and replaced with an at-the-money option 2. Option Exchange: The underwater option is exchanged for a restricted stock unit award 3. Option Buyout: The option is purchased by the issuer for cash" (Morgan, Lewis & Bockius LLP)

[Guidance Overview] Jan. 31 Reporting Requirement Deadline Regarding ISOs and ESPPs
Excerpt: "This is a reminder to public and private companies that grant incentive stock options (ISOs) or maintain a tax-advantaged employee stock purchase plan (ESPP). Section 6039 of the Internal Revenue Code of 1986, as amended requires such companies to provide information statements by January 31, 2009 to each employee who during 2008 either (i) received stock upon the exercise of an incentive stock option or (ii) sold or otherwise transferred legal title to stock acquired under an employee stock purchase plan. Treasury regulations specify the information required to be in each information statement." (Briggs and Morgan)

Employee Ownership Update for Feburary 2, 2009
NCEO Executive Director Corey Rosen discusses a survey of how ESOP companies are weathering the downturn, Google's generous option exchange program, ESOPs and the coming wave of business sales, and initial results from the NCEO's first ESOP membership survey. (National Center for Employee Ownership)

[Guidance Overview] Net Exercise of Stock Options (PDF)
2 pages. Excerpt: "Conclusion: Because of the positive changes provided by new accounting standards, net exercises of stock options are an attractive and practical benefit. Net exercises are administratively less burdensome for the sponsor and a cost-free additional benefit for participants. Before implementing any net exercise provisions, companies should consider the tax, securities law, accounting and plan amendment issues that may be implicated by a new net exercise provision." (Kelly, Hannaford & Battles P.A.)

Google Offers Workers Cheaper Stock Options
Excerpt: "Google Inc. is allowing its employees to swap their stock options for new ones that will give them a better chance to profit from their holdings. The Mountain View-based company outlined the exchange program Thursday in its fourth-quarter earnings report. . . . Google will have to absorb another hit to earnings to pay for the new options being made available to its 20,222 employees. Management expects the accounting charge to be about $460 million, assuming the new exercise price for the options is around $300." (AP via The Washington Post; free registration required)

[Guidance Overview] Special Reporting Requirements Regarding Incentive Stock Options and Employee Stock Purchase Plans
Excerpt: "This Alert will serve as a reminder of certain year-end reporting requirements imposed with respect to incentive stock options and employee stock purchase plans and as a notification of changes in future reporting requirements." (Cooley Godward Kronish LLP)

Employee Ownership Update for January 15, 2009
NCEO Executive Director Corey Rosen discusses an increase in stock drop cases involving 401(k) plans and ESOPs; an analysis of stock option valuation assumptions; the recoverability of equity-based compensation deferred tax assets; NCEO volunteer opportunities; and the Great Game of Business conference. (National Center for Employee Ownership)

New article on stock options, restricted stock, phantom stock, SARs, and ESPPs
NCEO Executive Director Corey Rosen has written a new article for the NCEO's Web site on stock options, restricted stock, phantom stock, stock appreciation rights, and employee stock purchase plans. (National Center for Employee Ownership)

[Guidance Overview] Recoverability of Equity-Based Compensation Deferred Tax Assets
Excerpt: "As the stock market slides, more stock options and related deferred compensation instruments are 'underwater,' and the related deferred tax assets may no longer be recoverable. The balance sheets and tax footnotes of many entities highlight the magnitude of these equity-based compensation deferred tax assets. When and how they are written off could have a significant impact on the income statement. As a result, and in light of the recent trends in market prices, equity-based deferred compensation plans need to be monitored quarterly for events that trigger the fixing of the corporate tax deduction and the recoverability of the related tax asset." (Journal of Accountancy)

FAS 123(R) Option Assumptions: Analysis of the 2007 Results
Excerpt: "Watson Wyatt recently completed its second annual analysis of stock option valuation assumptions and results under Statement of Financial Account Standards (SFAS) 123(R).1 From 2006 to 2007, the percentage of companies disclosing option fair values decreased from 74 percent to 73 percent, and the number disclosing stock compensation expense increased from 93 percent to 94 percent. Median stock compensation expense increased by 9 percent in 2007." (Watson Wyatt Worldwide)

Employee Ownership Update for January 5, 2009
NCEO Executive Director Corey Rosen discusses a wave of stock option repricings; IRS statements to ESOP advisors that they are putting on hold approving plan provisions that segregate ESOP accounts at termination until the IRS comes up with a position on this; enhanced employee ownership opportunities in Germany; an employee ownership proposal at Change.org; and an invitation to submit stories about how your employee ownership company is dealing with the downturn. (National Center for Employee Ownership)

[Guidance Overview] Saving Severely Underwater Stock Options
Excerpt: "Falling share prices have left many option holders -- both senior management and rank-and-file employees -- with severely underwater options. If these options remain underwater for a significant period of time, employee morale and retention could be negatively affected. To help avoid such consequences, companies may wish to consider repricing options to better reflect current share prices. Before doing so, however, a number of important securities, tax and accounting issues should be considered." (Faegre & Benson)

[Guidance Overview] Valuing Stock Options: Is It Time to Reconsider Binomial Lattice Models?
Excerpt: "Valuation models were the subject of intense debate during the drafting of 'Statement of Financial Accounting Standards (SFAS) No. 123(R) -- Share-Based Payment.' The exposure draft would have required companies to use a binomial lattice model (or something similar) to value employee stock option awards, but the final standard has allowed companies to use either a binomial lattice or a closed-form model, such as Black-Scholes, without preference. Companies overwhelmingly have selected the Black-Scholes model. Most consider Black-Scholes easier to use and understand, its use is comparable with peers and its results were generally consistent with a binomial lattice approach. This article examines why those advantages might hold less true today and why companies might want to reconsider their model selection." (Watson Wyatt Worldwide)

Underwater Stock Options and Repricing Strategy (PDF)
18 pages. Excerpt: "This article updates the discussion of repricing strategy in Underwater Stock Options and Repricing Strategy: Is Your Company Drowning in Confusion? and reviews the current usefulness of repricing alternatives. This article appears as a chapter of Selected Issues in Equity Compensation (2009)." (National Center for Employee Ownership via Janich Law Group)

Solutions to Underwater Equity (PDF)
Excerpt: "For most companies, the last several months have been a period of tremendous share price volatility and unprecedented decline in market value. The drop in the stock market has made underwater stock options a major topic of concern and conversation. It is a troubling problem for management and the board of directors when equity compensation vehicles initially granted to provide incentive and address retention and engagement issues among employees have lost their value. The problem is more acute as many companies over the past few years, often to mitigate the prospect of underwater options, have supplemented or replaced stock options with other forms of equity-based compensation which have lost most or all of their value and taken on the 'underwater' label as well." (Buck Consultants)

[Guidance Overview] Executive Compensation and Equity Compensation Plans Year-End Checklist (PDF)
3 pages. Excerpt: "The . . . checklist describes 2008 year-end action items with respect to executive compensation and equity compensation plans. Though not exhaustive, this list is intended to provide a reminder of the general set of issues facing us at year end." (Morgan, Lewis & Bockius LLP)

Silicon Valley Companies Looking to Reprice Underwater Stock Options
Excerpt: "As the trading price of many tech stocks has plummeted in recent months, thousands of Silicon Valley workers have seen the value of their employee stock options sink rapidly underwater. The cost of exercising some options is now higher than the value of the company stock for about 4,600 workers at Advanced Micro Devices -- which means those options are currently worthless. One analyst has estimated the same is true for 6,400 workers at Google. It's been a problem for 1,100 employees at VMware, which this fall offered to exchange old options for new ones with a lower strike price. 'It's a huge issue in the tech industry,' said analyst Brett Harsen of the compensation advisory firm Radford Surveys and Consulting, who noted that Silicon Valley has long relied on stock options to recruit and reward top talent and even mid-level employees. He predicted a wave of tech companies will ask shareholders for authority to address the issue by repricing or exchanging old options in coming months." (San Jose Mercury News)

[Guidance Overview] Net-Settled Stock Option Exercises: Considerations and Analysis (PDF)
7 pages. Excerpt: "Since the publication in the March/April 2008 issue of The Corporate Executive regarding net-settled options, there has been a heightened interest in these instruments throughout corporate America. The purpose of this white paper is to explore several issues with respect to net-settled options that will be of interest to companies actively considering implementing such a program. We will focus on some of the administrative and international issues that have not been highlighted in the published materials thus far." (Baker & McKenzie LLP)

[Guidance Overview] Backdated Options: The Tag-Along Qualified Plan Claims
2 pages. Excerpt: "Companies that allegedly backdated stock options now have a companion concern. Fiduciaries of their 401(k) plans are facing ERISA fiduciary claims where their plans have maintained company stock funds. In one such case, a federal district court has permitted a former employee to proceed with a claim against the employer and certain of its officers for breaches of ERISA fiduciary duties relating to alleged backdating. Bendaoud v. Hodgson, 2008 U.S. Dist. LEXIS 72788 (D. Mass. 2008)." (Utz, Miller, Kuhn & Eickman, LLC)

[Guidance Overview] 2008 Year-End Plan Sponsor 'To Do' Lists (PDF)
22 pages; at pages 1-14; bravo! Excerpt: "Attached are seven 'to do' lists that may require you to take action before the end of 2008 or in early 2009. Many of the action items are a result of the Pension Protection Act of 2006 (the 'PPA'). For your convenience we have broken the 'to do' lists into the following seven categories: All Qualified Plans; Section 401(k) Plans; Defined Contribution Plans (other than Section 401(k) Plans); Defined Benefit Plans; Section 403(b) and Section 457(b) Plans; Health and Welfare Plans; [and] Executive Compensation." (Snell & Wilmer)

Employee Ownership Update for November 17, 2008
NCEO Executive Director Corey Rosen discusses a new study finding that ESOPs owning less than 5% of company shares have a small but positive effect on total compensation, while in companies where the ESOP owns more than 5%, total compensation is 5.2% higher; a trend to reprice stock options; a new resource for business school case studies on employee ownership; a cautionary tale of planning for the ESOP repurchase obligation; a job at the NCEO; and NCEO board nominations. (National Center for Employee Ownership)

[Guidance Overview] Granting Stock Options in Turbulent Times: Choosing Valuation Assumptions (PDF)
6 pages. Excerpt: "Admittedly, stock option valuation is an inexact science, and the primary sources of this imprecision are the volatility and yield assumptions used in the Black-Scholes model. The other four inputs are either explicitly stated (exercise price) or empirically observable from historical data (risk-free rate, expected term and fair market value). Volatility and yield, on the other hand, are based on future expectations, and thus historical or current data patterns are not the only -- or even the most relevant -- factors that should be considered." (Towers Perrin)

[Guidance Overview] India's Fringe Benefit Tax: Common Issues
Excerpt: "In April 2007, the Indian government imposed a fringe benefit tax (FBT) on the allotment or transfer of shares by a company to its employees under an employee stock option plan. In October 2007, the Central Board of Direct Taxes (CBDT) issued rules prescribing the method of valuing stock options subject to the tax. This Client Alert is a reminder about the previously approved tax law changes and the fact that employers in India generally must accrue and remit the taxes once the options begin vesting (even though they may not be exercised until some later date)." (O’Melveny & Myers LLP)

Economic Crisis Hits Incentive Plans Hard
Excerpt: "A new survey from Deloitte reveals that decreased earnings and falling stock prices have decimated the value of some companies' annual incentive and long-term incentive plans, leaving companies searching for ways to help their employees feel valued and motivated in this economy. The survey of 151 U.S. companies found that 59% expect their annual incentive plans to pay out below target, while 11% believe there will be no payout at all." (Employee Benefit News; free registration required)

[Official Guidance] Text of IRS Announcement of Hearing on Proposed Section 6039 Regs for Reporting of Incentive Stock Options, Employee Stock Purchase Plans
Excerpt: "This document provides notice of public hearing on [October 30 on] a notice of proposed rulemaking relating to the return and information statement requirements under section 6039 of the Internal Revenue Code. These regulations reflect changes to section 6039 made by section 403 of the Tax Relief and Health Care Act of 2006. These proposed regulations affect corporations that issue statutory stock options and provide guidance to assist corporations in complying with the return and information statement requirements under section 6039. . . . The IRS must receive outlines of the topics to be discussed at the hearing by October 23, 2008." (Internal Revenue Service)

Employee Ownership Update for October 15, 2008
NCEO Executive Director Corey Rosen discusses NCEO research for Innovest and the Herron Foundation finding that at least 29% of S&P 500 companies have some kind of broad-based employee ownership plan; a spate of stock-drop lawsuits following the financial sector's woes; 5 of the 15 winners of the Wall Street Journal/Winning Workplace Top Small Workplaces are ESOP companies; an AMT provision in the bailout bill that will affect stock option holders; and more. (National Center for Employee Ownership)

New edition of Equity-Based Compensation for Multinational Corporations
The NCEO presents excerpts from the new (10th) edition of its book Equity-Based Compensation for Multinational Corporations. (National Center for Employee Ownership)

Summary of Benefits-Related Provisions in Emergency Economic Stabilization Act of 2008
Excerpt: "Some of the benefits-related provisions in EESA passed by the Senate in addition to the executive compensation provisions . . . ." (Attorney B. Janell Grenier via Benefitsblog.com)

WaMu Employees Try to Tally Stock Losses; Pension Uncertain
Excerpt: "Thousands of Washington Mutual employees across the country whose stock options are worthless now face the possibility that their pension benefits may be at risk. JPMorgan Chase & Co., which took over Washington Mutual's banking assets last Thursday, is expected to make a decision about employees' pension plans by the end of this week. The company has not disclosed the alternatives it's considering." (Puget Sound Business Journal via bizjournals.com; free registration required)

Employee Ownership Update for September 30, 2008
NCEO Executive Director Corey Rosen discusses John McCain's endorsement of ESOPs, a new survey of technology and life science companies finding that both private and public companies are relying less on stock options than they did in prior years, a class-action lawsuit against Sam Zell over how he structured the ESOP at the Tribune Company, and nominations for the NCEO's board. (National Center for Employee Ownership)

[Opinion] On Backdating, ERISA, and the Possibly Unintended Consequences of the Diamond Hypothetical
Excerpt: "If you have an interest in both ERISA and in well written, logical judicial opinions, I can't recommend highly enough this opinion, by Judge Gertner of the United States District Court for Massachusetts, in Bendaoud v. Hodgson, deciding a number of issues at the motion to dismiss stage." (Stephen Rosenberg of The McCormack Firm, LLC)

Cashed-Out Participant Gets Go-Ahead in Company Stock Drop Case
Excerpt: "A federal judge in Massachusetts cleared the way for a participant invested in a company stock fund to pursue a fiduciary breach suit. The judge gave the OK, despite the fact that the plaintiff had cashed out of the fund more than two years before the employer disclosed its stock option backdating practices. U.S. District Judge Nancy Gertner of the U.S. District Court for the District of Massachusetts ruled that Soufiane Bendaoud had legal standing to sue over the Analog Devices Inc. (ADI) company stock fund under the Employee Retirement Income Security Act (ERISA)." (planadvisor)

Companies Increasingly Allow Options Exchange
Excerpt: "Firms are increasingly offering equity exchange programs by which employees can trade worthless options for new options or restricted stock, according to recent research conducted by Aon Consulting's Radford Surveys + Consulting, a provider of compensation market intelligence to the technology industries." (PLANSPONSOR.com; free registration required)

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