But start-up companies can attract needed talent by offering options as a form of delayed compensation.
The likeliest explanation for this popularity is that options are highly effective in attracting employees to tech firms, that talent is in short supply, and that backdating makes options more valuable.
ECONOMIST: A conviction for backdating options may be the first of many
Consulting companies are becoming more flexible in the way they structure work options to attract top talent.
The company attracts the first cut of talent in Silicon Valley because it offers stock options, the value of which has risen.
He scoured the world for the perfect battery technology (a combination of lightweight and long charging), added a solar panel for those without plug-in electricity recharge options, leveraged local university engineering talent to make it all work, and delivered a truly silent generator that can run a full size refrigerator for over a day if the power goes down.
While many have praised Estonia's flat tax, at a recent start-up conference in the capital's technical university complaints were raised over the lack of arrangements for stock options, a favored tool for attracting talent.
Before most moneymen, Rock recognized the energizing power of stock options distributed to a broad segment of a young company's talent.
That potential, say recruiters, will draw rare talent to an organization and particularly in an economy that will eventually expand and provide options.
The result is that cash-rich software majors, options-rich startups and relationship-rich industry insiders have been sucking up all available quality talent among them, leaving other industries and economic sectors starving.
As for talent, it follows a bell-curve distribution, as in every other age, but today it follows stock options, too.
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