Comments

Continued strong emphasis on pay-for-performance

Decrease likely in requirement for increased employee contribution to health insurance benefit. Pension is already changed to a cash balance plan.

Expect reduction/elimination of defined benefit pension program and in health care (increased cost to employees.

Health Insurance is a problem. The future sees us making cuts in employer portion of this benefit.

I believe FAS 123(R), put forward largely because of perceived abuses in executive compensation, will have the unintended effect of retaining stock options for executives but reducing or eliminating stock options for rank and file employees. Executives wi

IBM has changed its retirement plan this year. This is perceived as a take-away by the long timers. On the other hand it offers an opportunity to capture retirement and pursue other opportunities. As for stock - options are still offered as an incentive, however, there is a new approach where stock is given and immediately vested. The employee begins to earn dividends immediately. At the end of 3 years, the block can be sold. In the meantime, you are still being paid.

Medical benefits continue to erode (co-payments increase). Job security is a thing of the past everywhere. The half-life of most jobs these days is 1-2 years. Many are fearful that pension benefit promises will not be honored or be watered down from what was promised. Globalization of the high skill job market continues to have its effects on quality of life in the USA. These trends ought to be quantified objectively, they are perceptions that are widespread.

My company just completed a recapitalization and all previously granted stock options have been rendered effectively worthless. New stock options to compensate have been issued.

Public sector - no stock or option grants available.

Relative earning power is decreasing substantially with increasing cost of benefits and decreasing compensation (salary, bonuses, stock plans, etc)

Restricted stock replaced stock options in 2005.

This business unit may re-locate from Santa Clara County to Sacramento County

We are a privately held company and so don't have any Stock grants.