Long-term Incentives: Stock options are designed to align the interests of employees with those of shareholders by providing a financial incentive for employees to increase the company's stock value over time.
Retention and Motivation: Offering stock options can help retain key talent by giving employees a sense of ownership in the company and motivating them to contribute to its long-term success.
Strategic Alignment: Stock options encourage employees to focus on long-term goals and performance, which can lead to sustainable growth and increased shareholder value.
References:
SHRM, "Designing and Managing Incentive Compensation Programs," available at SHRM.org.
SHRM, "Understanding Stock Options and Other Equity Compensation," available at SHRM.org.
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