The use of restricted stock is rising relative to the use of stock options.

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Restricted stock has become increasingly popular as a way to compensate employees. The use of stock options has declined in recent years, partly due to changes in accounting regulations and tax laws. Restricted stock is seen as a more transparent and straightforward method of rewarding employees, as the value is determined at the time of grant and there is no need to set an exercise price. Additionally, restricted stock aligns employee and shareholder interests, as employees only benefit if the company's stock price increases.

The Use of Restricted Stock Is Rising Relative to the Use