Executive Compensation and Junior Stock: Avoiding the Pitfalls of a Bargain Purchase

Article Abstract:

In a discussion of junior stock plans, it is contended that they succeed in giving employees opportunities to participate in a corporation's financial growth, while encouraging them to maximize that growth. Federal income tax treatment of junior stock purchases like bargain stock purchases make them less attractive. It is a good idea to combine a junior stock plan with an incentive stock plan. Further study is necessary, as federal cases are unclear and potential income tax advantages of junior stock plans could be eliminated. Stress is placed upon knowledge of the significance of the terms fair market value and lapse restriction under the income tax rules. Lesser rights of junior stock can be viewed by the Internal Revenue Service (IRS) as lapse restrictions and disregarded.

Study and teaching, Income tax, Employee stock options, Comparative literature

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Financial Incentives Offered to Help Employees Purchase Personal Computers

Article Abstract:

Companies such as DuPont and McDonnell-Douglas are using financial incentives to help employees purchase their own computers. Employees with computers at home will become computer-literate. Arrangements have been made with various computer companies to offer interest-free loans. This program keeps training costs down and improves business decision making. A photograph of a Du Pont employee who participated in such a program is included.

Computer literacy, Personal Computers, Companies, Training of Employees, Incentives

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'Instant Offices' - Fully Equipped - Offered by HQ

Article Abstract:

Headquarters Companies (HQ) leases office space to individuals or small business groups. Leases include individual offices, use of common facilities, and secretarial/receptionist services. Cost is lower than leasing office space.

Contracts, Offices

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