There is no advantage over outside stakeholders except the option period. It changes their perspective. It facilitates and enhances opportunities for commitment and motivation. The value awarded remains relatively constant for any particular salary level, and is based on a percent of annual pay, granted at fair market value. However, a performance modulation is prepared, based on the manager's assessment of that person's overall performance.
Managers review, approve or recommend exceptional grants.
In concluding, Puchlevic discussed the connection between ownership and individual productivity and motivation. That is consensus, participation, communication, teamwork and visibility. A challenge for the future, according to Puchlevic, is in getting people to retain some stake in the company and continue to be challenged. They sell their stock and buy things like homes. Even scientists who joined us four years ago have well over a million dollars.