FREDRICKA WHITFIELD, CNN ANCHOR: Well time to take a look at business. Microsoft is ready to share with its employees. Let's get more on that from Carrie Lee at the Nasdaq market site. Hi -- Carrie.</s>CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Fredricka. The software giant says it's going to stop giving its employees stock options and rather instead give them actual shares in the company. Now this move is going to take place effective September, and it's actually pretty good news for Microsoft's 50,000 plus employees. Stock options, of course, give owners a right to buys tock at a predetermined price, but more than half of Microsoft's outstanding stock options are worthless and that's because the share price has fallen below the price at which they were fixed. Now Microsoft's new stock reward is going to be vested over a period of five years. And the company's CEO, Steve Ballmer, says the change is going to help the company retain and recruit top level employees. The company is breaking ranks with other technology giants which do rely on options. So far companies like Cisco and Intel have weighed in saying they don't have plans to change their option plans. But still, a new move for Microsoft. And, Fredricka, looks like pretty good news for employees.</s>WHITFIELD: All right, not bad at all. Thanks a lot, Carrie. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Microsoft to Give Workers Stock Instead of Options