k options enable companies to recruit better employees. Once the employees are hired, they work harder for the sake of the company as well as a rise in their shares, and therefore, the company is able to retain hard working elites. Another positive remark about stock options is that companies are not required by GAP to record them as an expense which, in turn, inflates their earnings. Just as before with the employees stock income, the company receives a tax deduction as well. When the employee exercises his stock then sells it in the market he receives an income, and this amount received by the employee is equal to the tax break granted to the company. Hence, the larger the price difference, the better it is for both the employee and employer.To conclude, stock options are increasingly being used as incentives for employees in companies around the world. Statistics state that the increased use of stock options privileges has increased the work ethic of employees, thus increasing sales. Stock options are a good non-cash compensation for increasing the moral of employees, but one should note that the underlying tax regulations could be complicated....
