Large Companies Reducing Option Grants

A study by Bear Stearns has found that S&P 500 companies granted 20% fewer options in number and 22% less in value in 2005, while NASDAQ 100 companies reduced the number of options by 14% and the value by 16%. Compared to their peak in 2000?, the number of options has declined by about 50% and their value by about 70%. The study does not address to what extent options have been replaced by other forms of equity awards, such as restricted stock or stock appreciation rights.