The effect of stock option grants on voluntary employee turnover

Balsam, Steven; Gifford, Richard; Kim, Sung‐Soo

doi:10.1108/14757700710725421

Cited by 15 publications

(8 citation statements)

References 8 publications

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“…A Management stock option reduces management turn-over during the vesting period. Balsam et al (2007) scrutinized that employee turnover is lower during the vesting period than an exercise period. They used Fortune 100 companies as samples.…”

Section: Stock Option and Turnovermentioning

confidence: 99%

“…Aldamatz et al (2018) provided evidence that granting broad-based employee stock options decreases employee turnover in US companies. Balsam et al (2007) showed that voluntary employee turnover during the vesting period is lower than the post-vesting period; thus, it can be said that the stock option postpones the employee to resign voluntarily.…”

Section: Introductionmentioning

confidence: 99%

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Is the Stock Option Effective to Maintain Key Management? Evidence from Indonesia Listed Companies

Feliana¹,

Lianggono²

2020

Proceedings of the 17 Th International Symposium on Management (INSYMA 2020)

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Management stock option is a form of compensation which has a hypothetical function to maintain key management, that in the end, the goal is improving company performance. This study aims to prove the hypothesis using Indonesia listed companies' data over the 2012-2016 period. The turnover rate measures management retention. The effectiveness of management stock options is examined during the vesting and exercised period, while management stock options are measured in three ways, i.e., a dummy of the existence of stock option, the amount of stock option, and the number of shares that are offered as stock options. Management stock options are found limited in Indonesia listed companies. Overall, the results showed that granting management stock options are only useful in retaining the management only during the vesting period. This study contributes to the remuneration and nomination committee in regulating the optimal management stock options.

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Section: Stock Option and Turnovermentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Is the Stock Option Effective to Maintain Key Management? Evidence from Indonesia Listed Companies

Feliana¹,

Lianggono²

2020

Proceedings of the 17 Th International Symposium on Management (INSYMA 2020)

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“…As a leader need to understand, the employee turnover is not just a problem of the human resources department (Conerly, 2018). Because human resource cost can be considered as tip of the iceberg where costs include, (1) talent onboarding (adverting, resumes reviewing and interviews arranging), (2) talent development (orientation training and enrolling in benefits programs) and (3) talent off-boarding (processing of the termination and exit interview arrangement) (Balsam, Gifford, & Kim, 2007). But rest of the iceberg will appear after the employee left and will last till recruit get the proper level of efficiency that showed by the employee who left (Szilagyi & Wallace, 1990).…”

Section: Employee Turnovermentioning

confidence: 99%

Retention of Generation-Z in Information Communication Technology Sector of Sri Lanka: A Conceptual Paper

Jayathilake

2019

Kelaniya J. Hum. Res. Mgt.

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The global expectation is that millennials and generation Z will take the stake of 75% of the workplace population by 2025. In addition, concurrently, Sri Lanka put its prospect on the ICT industry to be one of the major employers for the country. Presently, the industry has created 95,000 breadwinners. Still, the industry was hit with very high employee turnover ratio as per the department of statistics Sri Lanka. So, it is conspicuous that the industry is in a dilemma to retain its employees. Moreover, there are very little researches have been done on the gen-z work behaviours in the ICT sector of Sri Lanka where would be one of the biggest employers for gen-z digital natives who born after 1997 in Sri Lanka. Therefore, the objective of this paper to construct conceptual framework that address on the research problem that to find out the expectations of the gen-z in Sri Lankan context to improve the motivation of Gen-Zs' in-order to reduce the employee turnover in ICT industry through the literature review which has been predominately used journal articles from-1991-to-2019 in emerald platform. Literature has found that crucial 5 holistically independent constructs that significantly positive correlation to reduce employee turnover in the ICT sector. Therefore, it has emphasized that there is a research gap to fill-up through the future research that based on this conceptual framework with enhancing the reliability by incorporating with the real-world simulation through pragmatic worldview research approach with a research design using the explanatory sequential method as a recommendation for future work.

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“…Lu, Reising & Stohs (2007) noted that high shareholding executives would exercise greater power and shielding themselves from termination in a poor performing firm. The negative effect could be reduced if equity-based plans are properly designed by incurring turnover cost on the executives' departure (Balsam, Gifford & Kim, 2007;Marshal, 2017). And for firm with equity plan, the cost of leaving may be defer a in a few years following the granting date.…”

Section: Hypotheses Development For Executive Turnovermentioning

confidence: 99%

Incentive Effects of Granting Equity-Based Payment on Reducing Top Executive Turnover

Ismail¹,

Ahmad²,

Norwani³

et al. 2019

RWE

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The main focus of the study is to examine the incentive effect of granting equity-based payments for reducing turnover among the executives. In specific, the study was guided on determining the influencing effects of managerial ownership and equity-based payment may reduce executive turnover among the Malaysian Listed companies. From the analysis, the main finding shows that firms with equity-based programme with a presence of family control indicates that turnover is likely to be a lower. This implies that family ties play a significant role for removing of inefficient executives. And, where the family members are also served as the board members, the likelihood to shield from being removed is consistent with the management entrenchment hypothesis. Then, extended examination results for the mix pay components of cash and equity reveal the turnover is found to produce less incentive for executives to stay in the firm. The result implies that executives are willing to lose their equity benefits from unexercised value of shares equity and nd the firms fail to restrain executives’ departure as the findings documented in past studies.

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The effect of stock option grants on voluntary employee turnover

Cited by 15 publications

References 8 publications

Is the Stock Option Effective to Maintain Key Management? Evidence from Indonesia Listed Companies

Is the Stock Option Effective to Maintain Key Management? Evidence from Indonesia Listed Companies

Retention of Generation-Z in Information Communication Technology Sector of Sri Lanka: A Conceptual Paper

Incentive Effects of Granting Equity-Based Payment on Reducing Top Executive Turnover

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