Scenario. Hawthorne Industries is seeking to motivate its employees by providing them ownership of company stock.  A publicly traded corporation doing approximately $30 million in revenue each year, Hawthorne has 1100 employees spread over the country. The Hawthorne stock is traded on the American exchange and has had a fairly stable trading history. The company believes that employees who own a part of the company will be more motivated in their work activities, so it is looking at a number of ways to accomplish this goal. The options under consideration are 1) using employer stock as the match for their 401(k) plan, 2) unveiling a stock option program for all employees, or 3) introducing a phantom stock program. Discuss in detail each of these options. As you discuss each, select the one you feel would best accomplish the objective of the company, and state the reasons for your selection.
  
Part A

Discuss in detail   Option #1, using employer stock as the match for their 401(k). 
 
Part B

Discuss in detail   Option #2, unveiling a stock option program for all employees. 
 
Part C

Discuss in detail   Option #3, introducing a phantom stock program.