Share options benefits 'could damage businesses'

Companies which are currently offering share options to workers such as those in sales manager jobs as part of their employee benefits schemes could be strongly impacted by problems with the financial sector, an expert warns.

According to Personnel Today, assistant director of the Association of British Insurers Marc Jobling states share prices are low at the moment which means schemes which give a set value are likely to cost firms more in the long-run.

He says if £1,000 of shares are given to a worker ten later on these could easily cost the company more than ten times their value at the time of issuing.

Talking to the news provider, Mr Jobling warns this type of deal could result in those holding sales manager jobs being given "far more than an employer could afford to pay".

He says: "There is a danger, when you've got a significantly depressed share price, of awarding that number of shares which results in excessive reward."

Earlier this month, Employeebenefits.co.uk reported Mercer's head of sales and client management Tony Morgan advising businesses to make the total benefits the centre of the sales recruitment process in order to show potential employees the full extent of remuneration policies.

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Filed: 17-10-2008