In the Company of Owners

Stock options have been much maligned recently, mainly because of fatcat executives who've cashed them in for millions, before the share price tanks and average shareholders suffer. But stock options can be a very good thing if handled correctly, say Rutgers University professors Blasi and Kruse and BusinessWeek editor Bernstein. They make the argument for why options-offered to all employees, not just upper-level execs-are a serious boon, ""bringing about a more productive company and, ultimately, rewarding employees and outside shareholders alike."" The book does seem a bit quaint at times, such as when it talks about how Silicon Valley types have got it right when it comes to options. (Many of those high-tech firms, of course, are either defunct or fighting for their lives.) The pace is somewhat plodding, as the authors recount company strategies and cite various studies, but the introduction and conclusion focus on sexier, newsier issues such as the ""option-induced avarice"" that led CEOs to jimmy company numbers in order to boost stock price. The authors' plea is a valid one: that ""partnership capitalism"" not die as a concept for the many, just because of the greedy abuses of a few.