Though once a critical component of competitive compensation, in the not too distant future it could be a rare thing to hear folks talking about options packages.
Options grants are going out of style while performance-based full-value shares are becoming the norm. According to recent analysis of 1,345 S&P companies performed by Equilar, since 2012 the median number of options granted has fallen from 250,000 to 181,000 as the median number of restricted shares or restricted stock units has risen from 433,000 to 440,000. Furthermore, since 2009, the share of companies granting performance-based equity has risen from 46 percent to 69 percent. This trend exists across all major sectors of the economy.
