Let's pretend you own a small business that cannot afford to pay huge salaries for talent. In
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Let's pretend you own a small business that cannot afford to pay huge salaries for talent. In the old days, you could grant key employees a fist full of stock options in lieu of a large paycheck. If the company succeeded, the optionees would be rewarded. But under SFAS 123R, the calculated present value of the option grant needs to be expensed now and not when the optionee cashes-in their options. As a small business owner, would you be inclined to grant stock options to attract talent or would you consider another method? Also, did SFAS 123R make it tougher for start-up companies to hire quality employees?
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Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
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