Barnett Banks Inc. Wednesday launched an aggressive stock option plan for its 22,000 employees.
The Jacksonville, Fla., bank will extend options to purchase 200 shares of stock to each of its full- and part-time employees through its "Make it your business" program.
"We needed to give a more tangible and a more potentially financially rewarding recognition to our employees," said Allen Lastinger Jr., Barnett's president. "Giving them an equity interest in the company seemed to be the most logical vehicle for that."
BankAmerica Corp., NationsBank Corp., and Norwest Corp. have also stepped up their stock option programs recently, but analysts said Barnett's was more far-reaching than most.
Under the plan, employees can purchase the stock at $41 per share after five years or if the price reaches $66 and stays there for five of the next 10 trading days.
Barnett set aside 200,000 shares for new employees in addition to the 4.4 million shares set aside for current workers. The bank Tuesday announced that it expects to acquire Oxford Resources Corp., an automobile leasing company, by midyear.
Previously, about 1,500 employees in senior management positions could own stock through payroll deductions, their 401(k) plans, or through other stock option programs.
"I fully endorse this move," said Anthony Davis of Dean Witter Reynolds. "It really affects the way that employees think about their job, and they are certainly taking it to a different level."
Analyst Sam Beebe of William R. Hough & Co. added that the program is a "can't-lose proposition" for outside stockholders, since employees can exercise options only if the value of shares outstanding grows substantially.
John Coffey, who reiterated his "buy" rating on the stock citing the Oxford acquisition, said the employee benefit program "will help differentiate Barnett from the other banks in the Florida market who compete with Barnett for its work force."
Barnett shares fell 75 cents, to $41 per share, Wednesday on the news of the option program. The Standard & Poor's bank index slipped 0.42%
Separately, shares of Ryan, Beck & Co., the West Orange, N.J., investment firm that specializes in bank and thrift work, fell 75 cents to $4.125 on news that Allen S. Greene, 50, president and chief executive for the past two years, has resigned.
The firm said it would take a severance charge of $420,000, or 13 cents a share, in connection with the departure of Mr. Greene.
