All employees at Standard can purchase stock with no brokerage fee. Stock options are offered to the top 100 positions by job title and salary. Cestelli said investors like to see that top managers own interest in the company as it may spark better performance. While stock options are a way to obtain the best talent, they are only one component of that, Cestelli said. But no matter what Wall Street is doing, stock options are risk compensation, Fischer said.
Some employees choose to borrow money to purchase stocks and are later left with valueless equity.
In 1987, when the market crashed, some executives faced bankruptcy while others left companies, dumping their shares and leaving big bank loans. Stock options also can carry huge tax implications, Fischer said. If employees exercise their options and the value of the stock plummets, they still owe taxes. Fischer said she isn't sure if the current stock scenario could mirror 1987's when some executives with stock options found themselves facing financial ruin. Earliest info on new businesses, homeowners Sales Prospecting Center Real info, real opportunities.