Share in 2010 they have the option to exercise his or

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share in 2010, they have the option to "exercise his or her options" and sell the stock at a profit. Stock options are typically reserved for executives, although more companies have offered options to all employees, such as PepsiCola, Merck, McDonald’s, Wal-Mart, and Proctor & Gamble. Some studies suggest that higher organization performance occurs when top and midlevel managers are eligible for longterm incentives, although results are not clear regarding lowerlevel employees. 3. Employee stock ownership plans (ESOPs) are employee ownership plans that give employers certain tax and financial advantages when stock is granted to employees. The number of employees in such plans increased from 4 million in 1980 to over 10 million in 1999. A. Gainsharing, Group Incentives, and Team Awards 1. Gainsharing programs are based on group or plant performance (rather than organization wide profits) that does not become part of the employee’s base salary.
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