CSC To Reissue Employee Stock Options - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


CSC To Reissue Employee Stock Options

For workers, it makes the options meaningful again: Like many technology companies, CSC has seen its stock prices plummet in the last year. Its stock closed at $37.70 Monday, down from a 52-week high of $74.93.

Computer Sciences Corp. will reissue employee stock options to motivate workers to remain with the company. Employees with stock options giving them the right to buy stock for $70 will be offered the option of exchanging them for an equal amount of options that will be granted next year at market price. The company has 170.3 million shares outstanding, and 17% of 14.7 million outstanding options are eligible for the program.

For the employees, it makes the options meaningful again: Like many technology companies, CSC has seen its stock prices plummet during the last year. Its stock price closed at $37.70 Monday, down from a 52-week high of $74.93. But shareholders often grumble about such deals, since investors who bought at, say, $74, want employees motivated to get prices back above that level.

In the last two years, stock options had been seen as a promise of quick wealth. That view is changing, but stock options still have a place in compensation structures, Meta Group analyst Maria Schaefer says. "Options are to keep salaries down and compensate employees when the company succeeds," she says. "Companies have to offer incentives or face losing their talent pool."

The service provider will release its second-quarter earnings Thursday.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Get Your Enterprise Ready for 5G
Mary E. Shacklett, Mary E. Shacklett,  1/14/2020
Modern App Dev: An Enterprise Guide
Cathleen Gagne, Managing Editor, InformationWeek,  1/5/2020
9 Ways to Improve IT and Operational Efficiencies in 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/2/2020
Register for InformationWeek Newsletters
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll