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Summary of Wall Street Journal

Summary of Wall Street Journal

 There is a wide income gap and economic inequality between low income American workers and corporate executives. Low income workers are underprivileged since they are denied stock options and other employee benefits. They are disrespected and discouraged and for this reason they live a low standard life (William & Richard, 1). On the other hand, corporate executives are given stock options and this increases their income. However, this issue can be solved through creating affordable ways for providing stock options to both middle income workers and corporate executive so that all employees can purchase the shares equally (William & Richard, 1). In order to implement the solutions, people should understand that stock options are not only for the corporate executives but rather it belongs to all employees which work in that particular company. In other words, all employees should be given the opportunity to enjoy the benefits and in this case the stock option. Other solution to this issue is offered by The Financial Accounting Standards Board which asserts that companies should apply the option-pricing model in stock price (William & Richard, 1). In others words, there should be financial accounting and transactions for stock-based compensation plans. The plans are based on employee’s stock shares, stock purchase, stock options and more (William & Richard, 1). This approach is effective since employees who make less than $100,000 annually will be restricted to access stock options (William & Richard, 1). Finally, in order to create a strong economic growth, motivate employees and create a great America, companies should give all employees opportunity to access stock. This will have a positive impact not only in the company but also in the entire economy as employees will recognize their effort toward creating the company’s success; they will increase morale and at the same time enjoy the retirement benefits (William & Richard, 1).

 

 

Work cited

William. M. Isaac & Richard M. Kovacevich. Stcok Option for the Little Guy.

329 Words  1 Pages
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