June 1, 2016

Bill Introduced to Encourage Stock Options

Executive Director

In a Washington Times op-ed, Rep. Dana Rohrbacher (R-CA) and Greg Autry at the University of Southern California argue that the best way to "ensure that corporate shareholders are individuals who can see beyond next quarter's profits" is to "find a way for employers to get more stock into the hands of employees and ensure they hold their shares." The advocate a bill (H.R. 4577) that would provide substantial tax incentives for companies that provide a simple grant of stock options to employees, although critics note that the bill does not contain any provisions to ensure a broad distribution of those awards, which could be limited to executives.