Stock options seem to be the big "benefit" when companies hire people. They entice prospective employees with options to buy their stocks at reduced rates, or matching what they buy. But what happens if the company gets sold for a ridiculously discounted rate?
More so than other firms on Wall Street, Bear had encouraged its employees, from secretaries to top executives, to be long-term holders in the company's stock, and the employees own over 30 percent of the company.
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"My life has been flushed down the drain," said one person. There was talk Monday that with their life savings nearly depleted, some executives had moved quickly, putting their weekend homes on the market.
You not only face losing your job, but also any security you may have had in such circumstances, as well as retirement.
I used to work for Lowes and they did the same thing. When you were hired they tried their best to sell you on their stock options program. Numerous employees did so and that was the only stock they owned. I used to tell them how idiotic of a decision that was. At least you should diversify your portfolio some. Their stock hasn't done anything like Bear Stearns, but in this economic roller coaster, you never know.
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