Stock Options Take a Back Seat
Thirty-eight percent of those taking the poll say they believe their options are now worthless. When asked if they would take a pay cut in exchange for more options, 29 percent say they would reject the idea. Thirty-eight percent of the respondents said the largest pay cut they would consider in exchange for options was in the 5 to 10 percent range.
This may come as bit of a shocker to Redback Networks Inc.’s (Nasdaq: RBAK) new CEO, Kevin DeNuccio, who has proposed that his employees take as much as a 25 percent cut in salary in exchange for more company stock options (see DeNuccio Joins Redback). Redback’s stock has fallen from a high of $132 a year ago to under $5 today.
Still, some respondents are optimistic that the market will turn around. Twenty-nine percent say that stock options are an important attraction to their job.
— Marguerite Reardon, Senior Editor, Light Reading