Twitter lavishes stock options on its employees. That's a bad idea.

There are better ways to reward employees

Twitter may have handed out too many stock options to its employees.
(Image credit: Photo illustration by Jackie Friedman | Images courtesy Twitter, Ikon Images / Alamy Stock Photo)

Twitter is reportedly in talks with several major technology and entertainment companies over a potential buyout. Suitors reportedly include Microsoft, Salesforce, and Disney. The social media upstart's stock price has surged amidst speculation of a sale, and that could be a saving grace for its corporate management: Twitter's user numbers have plateaued, causing skittishness on Wall Street about the company's growth prospects, and sending the stock price on a two-year slide.

But whoever winds up buying Twitter will also have to figure out an unusual situation: How to deal with the large amount of stock Twitter doled out to its employees as a form of compensation.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.