Week 4 Discussion Research 2 - -If the stock is subject to...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
2. I only see 20 pages in the P&G 10K; however the question says to focus on page 28… Interesting?! I did however find it interesting that Proctor and Gamble’s board of directors approved an employee stock benefit plan without allowing the current stockholders the opportunity to vote on the topic. Employees are either given the option to purchase their own stocks or are given some shares in the company. The risk that is run aligns with the disadvantages of such stock programs. Some of these disadvantages are as follows: -Employees may not actually be able to take ownership of the stocks until certain requirements have been met. This may make the option of buying stocks unattractive.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: -If the stock is subject to vesting restrictions, various accounting rules may apply which will cause the stocks to change value. -Employees may feel pressured to buy stocks which may be an uncomfortable situation to be in. On the other hand they may be unable to afford the stocks, thus making this a benefit that will intrigue mostly higher paid employees. Basically this is a benefit that is still largely controlled by the company and may not really be beneficial or favored by the average employee. Sources: http://www.sec.gov/Archives/edgar/data/80424/000095015205007351/l15436ae10vk.htm http://www.nceo.org/main/article.php/id/48/...
View Full Document

This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.

Ask a homework question - tutors are online