Google has announced ‘Transferable Stock Option Program’ for its employees. Under the TSO program, Google employees will be able to sell their vested stock options to financial institutions in an online auction.


Google has announced ‘Transferable Stock Option Program’ for its employees. Under the TSO program, Google employees will be able to sell their vested stock options to financial institutions in an online auction.

Google Announcement

“This program represents an innovative way to compensate employees and will increase the efficiency of Google’s equity compensation by increasing the per-option value of employee stock options. Google will amend the terms of eligible employee stock options to make vested options transferable.

The auction will be managed by Morgan Stanley. Smith Barney will serve as the employee stock option administrator. Google is working with multiple financial institutions to participate as bidders in the auction.” []

Google’s employee stock options have a ten-year term from the grant date. Under the TSO program, Google’s employee stock options will have a lifespan of the lesser of two years.

Only stock options offering will be eligible for this program, and Google’s Executive Management Group will not participate in the program, according to Google.

Google is going to launch the program the second quarter of 2007.

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