Google To Issue Transferable Stock Options

Google announced it will issue its employees 'transferable stock options' which will allow bids from other investors and financial institutions. Morgan Stanley is setting up the innovative program which may pave the way for other
companies. Google has been in the midst of an intensive hiring spree since 2004 which is likely to continue as the company grows. Google has already seen its stock climb from an IPO of $85 to a recent $512. Stock options allow the holder to purchase the stock for up to ten years at the price set when the options are granted. The transition may lower Google's profit next year, but it isn't expected to affect the company's market value. What's in it for Google? Some employees will be enticed to settle for fewer options in pay packages, and the options may lure high-profile employees with their appeal.
• Sources: Associated Press , New York Times, CBS News. Conference call transcripts: Google Q306
• Related commentary: Google Earnings Growth To Settle At 28%, Google Finance Has a New Look, Trying to do Business with Google.
• Potentially impacted stocks and ETFs: Google (GOOG), Morgan Stanley (MS). Competitors: Yahoo (YHOO). ETFs: Internet HOLDRs (HHH)

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