TITLE

Executive Commentary

AUTHOR(S)
Heisler, William J.
PUB. DATE
February 2003
SOURCE
Academy of Management Executive;Feb2003, Vol. 17 Issue 1, p93
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article presents a commentary on employee stock option design. The author notes that stock options are not often well understood, even by corporate boards. He contends that linking option worth with performance is significant. He explains that executives and other employees should not benefit from option grants simply because the entire market is rising. The author is an advocate of indexing option prices to performance against peers. The author concludes that executive compensation design should balance the needs shareholders, executives, and other employees.
ACCESSION #
17539611

Tags: EMPLOYEE stock options -- Management;  EMPLOYEE fringe benefits -- Management;  OPTIONS (Finance);  STOCKS (Finance) -- Prices;  DIVIDEND yield;  COMPENSATION management;  FINANCIAL ratios;  PRICE-earnings ratio;  MARKET capitalization;  FINANCIAL performance

 

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