May 1, 2007
Value of Stock Options Grants Declines
A new survey from Watson Wyatt Worldwide found that the value of stock options (based on the Black-Scholes formula) dropped 71% between 2001 (its peak) and 2005, falling from $137 billion to $40 billion. The value of options declined 32% just from 2004 to 2005. The value of grants per company declined by 33%.