Employees of high-tech companies which have seen the value of their shares collapse recently may shortly be granted new stock options as part compensation.
The software giant Microsoft has this week granted new stock options to all 34,000 full-time employees, aiming to compensate them for the stock's 40 per cent dive this year.
Other companies hit by the sudden tech-stock bear market have been mulling similar steps as a way to head off defections of workers for whom options form a big part of their pay package.
Analysts said Microsoft's move may increase the pressure on other tech companies to act. But the move also may provoke an angry reaction from shareholders.
Microsoft president Mr Steven Ballmer told employees they would immediately receive options equal to the number they were awarded last July in their regular annual review. Employees hired since last July would receive options matching the number they were awarded upon hiring, he said.
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