Business

Jan 19, 2009

Deacons wrong on performance rights

According to a study by mid-tier law firm Deacons, almost three-quarters of employee share options plans issued since 2003 are worthless, writes Adam Schwab.

“Share option plans worthless”, screamed the Financial Review last Friday. According to a study by mid-tier law firm Deacons, almost three-quarters of employee share options plans issued since 2003 are worthless. Deacons also noted that “S&P/ASX 50 companies learnt a lesson from the dot-com crash and moved to performance rights schemes rather than employee option schemes to ensure that their incentive schemes continued to motivate their employees during downturns in the market.”

The Deacons study’s fawning admiration of performance rights is certainly not a good thing for shareholders.

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1 comments

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One thought on “Deacons wrong on performance rights

  1. DavidM

    Good work.
    Keep it up, Alan.

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