Stock watching is as popular as baseball in many locations, especially in Silicon Valley, which means there were a lot of engineers with frazzled nerves as technology-laden Nasdaq bounced all around the charts this year, busting through the 1000 mark to above 1200, only to slide down again, taking with it daydreams of paid-for children's college educations and second homes. As of Sept. 20, Nasdaq recovered a bit (near 1200), but lower-than-expected earnings for any of the big electronics firms could spook investors and palpitate the hearts of at least a third of our readers.

More than 38 percent of our respondents own stock options in their companies. It helps to be in management; half our design-and-development engineering managers have stock options, vs. 36 percent of design engineers.

Half the respondents estimate those options to be wort h under $10,000, but 44 engineers and executives estimate their options would bring them $100,000 or more if they cashed them in today.

Generally, stock options are used by smaller companies, often startups, to lure experienced experts from comfortable, well-paid jobs at larger companies. A Coopers & Lybrand study, for instance, revealed that the founders of newly-public high-tech companies earned an average of $206,000, vs. $166,800 for non-founders.

"An equity stake is often the key means of attracting and retaining much needed expertise," the study maintained. While that study focused on chief executives, the tactic can apply to in-demand senior engineers as well.

You don't have to be a chairman or vice president to collect on options. Four senior engineers, three project engineers, six technical directors and another 11 engineers in lower ranks own more than $100,000 in options.

Plans vary from company to company, but generally, qualified employees are allowed to buy stock at a pre-set price no matter how high the price rises. In exchange, the employee must work at the company for a certain number of months or years before they can cash in.

A more common practice is for companies to offer stock-purchase plans to their employees. More than half the readers' employers promote such employee plans. Usually, there's little, if any, discount in the price. But automatic paycheck deductions and regular investment can add up over the years if your employer is successful. Many IBM engineers enjoyed substantial payouts when they retired, thanks to their plans.

On the whole, purchase plans aren't nearly as lucrative as options; 59 percent of the respondents report owning under $10,000 worth of stock of their employers, with eight percent estimating their stakes above $100,000.

Such investments are vital if engineers are to finance their retirements.

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