Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Latest NewsPay & benefitsShare options

Share options fall out of favour as long-term incentives for European business leaders

by Michael Millar 22 Jun 2006
by Michael Millar 22 Jun 2006

The number of European companies using share options to reward their CEOs and other executive directors has dropped significantly in the past three years as companies look for new ways to offer long-term incentives to senior staff.

Research by Mercer Human Resource Consulting found that in 2004, 63% of companies offered share options compared to just 41% in 2006 – a reduction of more than one-third. The average grant of options as a proportion of the long-term incentives package also fell, from 45% in 2004 to 24% this year.

The survey, which covered 105 large companies across Europe, found that other long-term incentives have become more popular. In the UK and Ireland, the use of performance shares has increased, from 70% of companies three years ago to 84% in 2006. 

Richard Lamptey, principal at Mercer, said that since January 2005 companies were required to expense options in corporate accounts, which had reinforced a perception that share options are less cost-effective than other long-term incentives in providing executives with a real interest in the business.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“Companies need to think carefully about the relative merits of different long-term incentive vehicles, to support their business strategies and projections,” he said.

The UK and Ireland are stricter than continental Europe in attaching performance conditions to their long-term incentives. Almost all (94%) of companies attached performance conditions to their long-term incentives compared to a total of 85% in continental Europe.

Michael Millar

previous post
Driver and Vehicle Licensing Agency cracks down on computer misuse by staff
next post
Working parents to benefit from new rights as Work and Families Bill receives Royal Assent

You may also like

Sandie Peggie launches fresh legal action against NHS...

3 Sep 2025

How to stop flying blind with workforce planning

3 Sep 2025

Ex-Specsavers director suspended over wrongful expense claims of...

3 Sep 2025

Salesforce cuts 4,000 customer service roles as AI...

3 Sep 2025

New ‘failure to prevent fraud’ law a ‘game-changer’

2 Sep 2025

PCs removed from firearms unit after Tallia Storm...

2 Sep 2025

Top 10 HR questions August 2025: Conduct outside...

2 Sep 2025

Nestlé sacks CEO over ‘undisclosed’ romantic affair

2 Sep 2025

Revolut employees to receive share sale payout

2 Sep 2025

Personnel Today Awards 2025 shortlist: Health and wellbeing

2 Sep 2025

  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise