There has been a significant change, which will continue, in the expectations of young professionals to have some skin in the game. At internet service provider Freeserve , for instance, staff are offered at least the equivalent of their annual salary in share options as an incentive - the only difference being they are now not Freeserve shares but those of Wanadoo , the French rival that swallowed it up earlier this year. If anything it has been offering options worth higher multiples of salary, to keep the incentive element even if the risks are greater. One change that has happened is that the downturn in the markets has led to a more realistic outlook about what it is reasonable to accept. Basic salary and potential bonuses are figuring much more highly in job negotiations, argues Kantelia.
Stock options are still an attraction but they are the icing on the cake.
I'd suggest that the budgets being put aside for basic salary levels are much higher than a year ago. It is very much 'show me the money up front'. But for many, particularly those prepared to take a risk and look to the long term, it's much too soon to sound the death knell of the stock option. In the US, some staff at Microsoft are having to cough up large amounts for paper gains in previous years, even though their shares have fallen steeply in value. Then the taxman cast his eye over the gains made on shares and slapped a bill on each option.