Google Employees Get Transferable Stock Option Program

Google has announced the Transferable Stock Option (TSO) program for its employees that lets them sell vested stock options in an online auction. But you can buy and sell options to purchase Google stock in the stock market anyway - so whats different?

“What is novel is that Google is extending this ability to trade options to employee stock options. If an employee chooses to sell options in the TSO program, he or she will use an internal online tool built by Morgan Stanley to sell them to the highest-bidding financial institution. The financial institutions buying the options will then likely hold them until maturity and then settle with Google. Google’s employee stock options typically have a ten-year term from the grant date. Under the TSO program, Google’s employee stock options, upon transfer, will have a lifespan of the lesser of two years or up to the remaining term under the original grant.”

The auction will be managed by Morgan Stanley. Smith Barney will serve as the employee stock option administrator. Google expects this program will go into effect in the second quarter of 2007. Only stock options issued since Google’s initial public offering will be eligible for this program.

Everyday the Google share price is touching new highs on Nasdaq. If you needed a reason to work at Google, these stock options makes Google jobs more attractive to its employees.