Business Case Studies,Corporate Governance & Business Ethics Case Study, Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free

Code : GOV0006

Year : 2004

Industry : Internet and e-commerce

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

Abstract: In the corporate America, owners, co-founders and top executives have been compensated with stock options, a profit sharing concept since the 1800s.

Microsoft has extended stock options to the rank-and-file employees since its public offering in 1986. During the IT boom, when Microsoft's stock prices soared, stock options had created the so called 'Microsoft millionaires'.

Stock options helped create a culture of employee ownership and entrepreneurial spirit. But with the decline in stock prices and growing anguish among employees, Microsoft shifted to restricted stock. The pay package was also seen as maintaining a balance between shareholders and employees' interests