Staffing in the tech sector is a big problem Many employees working in internet start-ups will be listening intently to the Chancellor's Budget speech for any changes to a tax quirk affecting share options. Most of these companies simply cannot afford to pay large salaries.
Share options are the answer.
The high-growth technology and telecom sectors are battling to find and retain staff at a time when serious shortages are being forecast over coming years. One of their key means of attracting staff is to offer share options - and it looks as though similar schemes are destined to become commonplace throughout the new economy. In the American IT heartland of Silicon Valley, share options are considered to be so valuable that they are virtually synonymous with cash. Some fast-growing internet companies have complained that these costs could make the difference between success and failure when they are battling for a foothold in a highly competitive field. We are doing this so that those who build their careers with us will be able to share in the wealth created by the firm.