Companies are increasingly switching from giving employee cash bonuses to giving them shares of stock. Companies such as Apple, Twitter, Zayo Group Holdings, WeWork Companies, VideoBlocks, Avant Inc., and MediaMath are given as examples in a recent article that reveals companies’ desire “to turn employees into owners.” The difference between an owner and a worker at any business is like night and day, so companies are now extending stock options to low ranking employees. For example, the CEO of VideoBlocks headquartered in Reston, Virginia says: “Fewer than five of our employees have left the company since we began giving all employees stock options; I want to have this culture where there’s true buy in, where everyone’s there not just to collect a paycheck.” At MediaMath headquartered in New York City, all employees, including customer-service reps and receptionists, are now given stock options designed to equal the amount of their starting salary. Their Chief People Officer, Peter Phelan, says: “We would rather not have the haves and the have-nots.” At Avant Inc., only one percent of its employees have left the company since the firm began giving equity to everyone. So, whatever incentives a company provides to employees for good performance of the business or exemplary work, shares of stock is gaining impetus over cash, to motivate employees, to make them owners of the firm, and to keep them onboard.

Source: Based on Rachel Feintzeig, “Do Workers Want Shares or Cash?” Wall Street Journal, October 28, 2015, p B7.