Government Stock Options Program (GSOP) as Performance Pay

Government Stock Options Program (GSOP) as Performance Pay

To ensure our nation remains a global leader, we need the best and brightest minds working in government. This requires competing with the private sector by offering competitive, even superior, earning potential, while managing government expenses responsibly. My proposed solution is the Government Stock Options Program (GSOP), a public-sector equivalent of an ESOP (Employee Stock Option Program). With GSOP, government employees and officials could receive stock options tied to a broad market index encompassing all public companies, ensuring impartiality and a focus on national prosperity rather than individual corporate interests.

Here’s how GSOP would benefit us all: Because these options are linked to the performance of a broad market index, their value only increases if the economy flourishes over the course of the government employee’s tenure. This aligns government personnel’s financial success with that of the nation, creating a direct incentive for officials to contribute to economic policies that benefit the public. A rising index boosts retirement funds, personal savings, job creation, and lowers the cost of capital—allowing businesses to expand and drive national employment. It will also enable companies within our nation to be more innovative relative to those of other nations (there is a correlation between cost of capital and risk-taking/innovation).

What makes GSOP even more compelling is its unlimited upside potential. If our nation prospers, government employees and officials have the opportunity to share in this success. By offering such an attractive remuneration structure, we can draw the most talented individuals into public service, securing a brighter future for everyone.

A stock option in a broad index doesn’t increase government expenses like a high salary would, because the value of the option only rises if the market index performs well over time. Unlike a fixed salary or bonus, which is a guaranteed expense, GSOP costs the government nothing upfront. Instead, it aligns compensation with the nation’s economic success—government employees and officials only benefit if their efforts contribute to broad economic growth.

This approach offers a sustainable and performance-based compensation model. Government personnel are incentivized to enact policies that improve the overall economy, benefiting all sectors without creating individual corporate bias. It’s a structure that not only attracts high-caliber talent but also fosters accountability, as employees’ financial rewards are directly linked to outcomes that support the well-being and prosperity of the entire country.

By rewarding government service in this innovative way, we can keep top talent engaged and focused on long-term economic growth, without burdening taxpayers with increased salary expenses. This ensures that we remain fiscally responsible while fostering a government workforce dedicated to the nation’s success—ultimately strengthening our competitive stance on the global stage.