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Stock Options


# 20786
Stock Options
Means for firms to tie performance to executive compensation. Provides a definition and looks at types, executive selection process, role of shareholders and advantages.
1,575 words (approx. 6.3 pages) | 7 sources | 1994 United States


From the Paper:

"Stock options are an increasingly popular way for companies to tie corporate performance to compensation for chief executives and key managers. Over the past half century, the professional manager has emerged as the chief executive in many large firms. Unlike the firm's original founders, these executives often own only a very small percentage of the company's outstanding stock. This can create the potential for a conflict of interest between the executives maximizing their own individual benefit and the outside owners wanting the company's value maximized. As a result, the use of stock options has emerged, and is usually reserved for decision makers in the company, with lower-level employees offered stock purchase programs (if any stock benefit). This research examines stock options and how they can be used by companies to provide incentives to key employees."

Cite this paper

APA Citation:

Stock Options (2012, January 15). Retrieved February 11, 2012, from http://www.academon.com/Essay-Stock-Options/20786

MLA Citation:

"Stock Options" 15 January 2012. Web. 11 Feb. 2012. <http://www.academon.com/Essay-Stock-Options/20786>




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Nov 08, 2002
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