What is the maximum discount allowed for stock options and SARs under the Worker Economic Opportunity Act?

What is the maximum discount allowed for stock options and SARs under the Worker Economic Opportunity Act?

• A. 20%
• B. 10%
• C. 15%
• D. No discount allowed

Answer: (C)

The maximum discount allowed for stock options and stock appreciation rights (SARs) under the Worker Economic Opportunity Act is 15%. This provision was designed to encourage employee participation in ownership and create a stronger linkage between employees and the overall success of the company. By allowing a discount on the price at which employees can purchase stock options or benefit from SARs, the Act aims to enhance employee motivation and retention. Understanding this allows companies to share their financial growth with employees while adhering to regulatory guidelines. A discount greater than 15% could lead to regulatory scrutiny or noncompliance with the law intended to foster equitable and sustainable employment practices.

The maximum discount allowed for stock options and stock appreciation rights (SARs) under the Worker Economic Opportunity Act is 15%. This provision was designed to encourage employee participation in ownership and create a stronger linkage between employees and the overall success of the company. By allowing a discount on the price at which employees can purchase stock options or benefit from SARs, the Act aims to enhance employee motivation and retention.

Understanding this allows companies to share their financial growth with employees while adhering to regulatory guidelines. A discount greater than 15% could lead to regulatory scrutiny or noncompliance with the law intended to foster equitable and sustainable employment practices.