State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
April 03, 2002
Lieberman Offers Stock-Option Reforms
U.S
For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
. Sen. Joseph I. Lieberman, D-Conn., wants to encourage businesses to issue stock options to rank-and-file employees as well as to top executives.

He called for creating tax incentives toward that end in a speech Monday at New York University.

Lieberman, who chairs the Senate's lead panel in investigating the Enron scandal, the Governmental Affairs Committee, had been asked to speak on the future of corporate responsibility in the wake of the energy giant's collapse, according to the Dow Jones News Service.

In the case of Enron, Sen. Lieberman pointed out, equity-related compensation like options had tempted its management to boost the share price in the short term by making wide use of opaque partnerships, giving them the chance to cash out their stakes. The practice ran directly counter to the motivating aim of options because it had harmed the long-term interests of the company and its shareholders.

By comparison, employees at lower levels lost chunks of their 401(k) retirement funds, which were invested in Enron shares.

"We have broad support in Congress in terms of preventing options from being misused" by company management, Lieberman told Dow Jones Newswires after his speech. He added that he has started working towards generating more support for his tax-incentive proposal.

He noted that currently, the majority of stock options issued by corporate America goes to top managers. With the proposed tax incentives, at least 50 percent of the issuance should go to employees, he said.

Meantime, he said other tax benefits should also be developed to encourage managers and employees to hold their options longer. Lieberman also called for the government to strike a balance between "doing too little" and "doing too much" in the wake of Enron's debacle.

"The Enron earthquake cries out for government action," the self-described "pro-business Democrat" said, but the government should also make sure that it "doesn't stifle the spirits of enterprise" with too many regulations.

To view the Dow Jones article, click here.


Participate in this week's HR.BLR.com poll and discussion!



Featured Free Resource:
Cost Per Hire Calculator
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB02
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Benefits-Leave/Employee-Benefits/Lieberman-Offers-Stock-Option-Reforms/