Tech: When Options Costs More Than Research

If you want to spur innovation, is it better to lavish stock-based compensation on employees or boost spending on research and development? The question is posed implicitly by a recent study that compared R&D spending with stock options and restricted stock awarded to employees of tech companies. The surprising finding: Quite a few companies, including Apple (AAPL) and eBay (EBAY), gave out more in stock pay in 2008 than they spent on research.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.