The number of companies awarding bonuses during the holidays is dwindling, according to Hewitt Associates, the management consulting and outsourcing firm.
Companies and employees must pay the 15.3 percent payroll tax on the exercise of incentive stock options and proceeds from employee stock purchase plans, under new regulations issued by the Internal Revenue Service.
Fifty-nine percent of executives who recently reduced their staffs report being worried that the layoffs will encourage the remaining employees to look for new jobs, according to a new survey.
Many U.S. employers are balancing staff reductions with across-the-board cuts in bonuses and pay raises. They are also considering overhauling stock option programs as more options go "underwater" in the wake of the economic slowdown, according to a new survey.
Many U.S. employers are balancing staff reductions with across-the-board cuts in bonuses and pay raises. They are also considering overhauling stock option programs as more options go "underwater" in the wake of the economic slowdown, according to a new survey.
Many companies are expected to drastically reduce their year-end employee bonuses, given the slowing profits and cost cutting that had commenced even before Sept. 11, ABC News reports.
In the past three years, nearly 90 percent of U.S. public and private technology companies saw employee stock-option grants go underwater, meaning the option's exercise price went higher than the stock's current trading value.
Despite a softening labor market and a U.S. economic slowdown, American companies are not cutting back on salary increases for their employees, according to a new survey of more than 2,500 U.S. companies.
