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Employee Stock Options in Germany

An exploratory study of employees’ perceptions on their use and effectiveness

Masterarbeit 2003 88 Seiten

BWL - Investition und Finanzierung

Zusammenfassung

Inhaltsangabe:Abstract:
Companies located all around the world increasingly utilize stock options as a means of compensation for employees. Despite their widespread use it is still unknown why employee stock option plans are adopted, how their effectiveness is defined, and what influences their effectiveness. This master’s thesis reports on an exploratory study undertaken on a sample of employees of the German IT company Network Appliance GmbH intended to answer exactly these questions.
The aim of this study was to explore in an in-depth, descriptive fashion, the perspectives of employees receiving stock options as part of their compensation as they are as participants in the process - best situated to provide insights into the practical implications on the use and effectiveness of employee stock options. The qualitative methodology of the study allowed for the opinions and experiences of the employees to be heard and a rich picture of their perceptions on employee stock options was attained. The qualitative content analysis revealed a number of goals, which are associated with employees’ perceptions on why employee stock options are a part of their compensation, and which factors influence these goals’ effectiveness. An exploratory model of the use and effectiveness of employee stock options has been deducted from these findings, which enables managers and researchers to obtain a better understanding of this means of compensation.
Even though research on compensation structures is typically explained by agency theory, the findings of this thesis suggest that no single theory provides a comprehensive explanation of the use and effectiveness of ESOs. Although the existence of a gap between employee and shareholder interests may lead some companies to adopt an employee stock option plan as suggested by agency theory, it is unlikely to be the only reason. Reality seems to be more complex than anticipated by guiding theory in this stream of research, therefore this study suggests that several theoretical frameworks complementing each other, such as human resource management, social exchange, tournament, social comparison, expectancy, managerial discretion, an institutional theory, are needed to fully grasp the use and effectiveness of employee stock options.

Inhaltsverzeichnis:Table of Contents:
Management SummaryII
ReferencesIII
Table of ContentsVIII
1.Introduction1
1.1Introduction1
1.2Problem indication1
1.3Problem2
1.4Research […]

Details

Seiten
88
Erscheinungsform
Originalausgabe
Jahr
2003
ISBN (eBook)
9783832472986
ISBN (Buch)
9783838672984
Dateigröße
1 MB
Sprache
Englisch
Katalognummer
v222596
Institution / Hochschule
Tilburg University – Economics and Business Administration
Note
1,0
Schlagworte
agency theory human resource management

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Titel: Employee Stock Options in Germany