BLS Data on Stock Option Participation Show Little Change

The percentage of workers receiving stock options in 2008 was unchanged from previous years, according to the Bureau of Labor Statistics. Its March 2008 data show that 8% of the 107 million private sector workers surveyed received options (more may be eligible but not have received them that year). This is essentially the same percentage it has been for the last few years given the margin of error in the survey. That suggests that broad-based equity plans, contrary to conventional wisdom, are not a relic of the past.

The BLS publishes an annual survey of companies' compensation and benefits practices. One of the measures is stock options, defined as shares that employees may buy at a defined price at a defined time. The question is somewhat ambiguous: some companies may interpret this to include employee stock purchase plans. The actual wording of the question is not available, only a summary of how BLS defines an option. Nonetheless, the number the BLS has produced annually has closely tracked data from the General Social Survey, which asks a more clearly defined question, as well as prior NCEO data estimates. Because the data come out annually, they also provide a reliable indicator of trends over time.

The percentage of employees getting options varies with income, industry, and other variables. For instance, 18% of those above the 90th percentile in terms of income get options, but only 4% in the bottom 25% do. Twenty-three percent of information industry workers get options, compared to 21% in finance, 8% in service companies, 11% in manufacturing, and 1% in construction.

The data can be found in the Bureau of Labor Statistics annual National Compensation Survey in the benefits section at this link, which also contains richly detailed data on health and retirement plans, bonuses, and other reward practices.