Journal of Indian School of Political Economy

Suresh Chand Aggarwal ¹

Affiliations
1 Satyawati College, Ashok Vihar, Delhi University, Delhi-110054, IN

Abstract

Employee stock option plans (stock options) have received increased attention in recent years both in India and abroad. Many organizations around the world have offered these stock options to their employees-managerial and non-managerial. The present paper outlines the concepts of profit sharing and ESOPs and gives the theoretical foundations of why these stock options are paid. Some empirical evidence on the success of stock option plans has been summarized which tells us that though the evidence is mixed on the significance, but there is a positive interrelationship between the adoption of these plans and the enhancement in productivity and employment stability. The main features of the current Indian scenario have also been highlighted. The paper traces the recent developments related to stock options and the reasons for the emergence of alternative incentive plans. A survey of these alternatives has also been presented.

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Suresh Chand Aggarwal ¹

Affiliations
1 Satyawati College, Ashok Vihar, Delhi University, Delhi - 110054, IN

Abstract

Performance of industrial sector has always assumed importance for achieving fast economic development in India. Its performance has been under scrutiny since mid-1980 but the major change in industrial policy in 1991 has made the evaluation of public sector an important policy matter. The present paper compares the performance of public sector with joint and private sector of the Indian industry with the help of different methods, including TFP and production function for the pre and post reform period. It finds that public sector has done quite remarkably if we analyse the growth in TFP and technological progress.

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