An increasing number of Japanese corporations are introducing de facto "stock option" arrangements so their executives and employees can take advantage of a highly lucrative system available to many U.S. corporate executives.
On May 6, well-known firms Daiwa Securities Co. and Advantest Corp. announced plans to introduce such systems. Toyota Motor Corp. and Orix Corp. have also expressed an interest in similar schemes.
The stock option -- a company perk that gives executives or employees the right to buy shares of company stock at predetermined prices -- is common in the U.S. but illegal in Japan. The incentive is for employees to work harder, bringing profits to the company and in turn raising the value of its stock.