The Trouble with Stock Options

Topics:
Reporting and Control,
Taxes
Tags:
Benefits,
Stock Options,
Stock Option,
Stock,
Option,
National Bureau Of Economic Research,
Investment,
Human Resources,
Financial Accounting,
Finance,
...
Source:
NBER.org: National Bureau of Economic Research

FREE Registration is required

Vendor Registration: $ Paid Download

Overview: The trouble with options is that too many options are granted to too many people. Most options are granted below the top-executive level, and options are often an inefficient way to attract, retain and motivate executives and (especially) loiter-level employees. Why, then, are options so prevalent? This paper discusses several explanations including changes in corporate governance, reporting requirements, taxes, the bull market and managerial rent seeking. This paper also offer an alternative hypothesis that it believe explains the over-use of options and several apparent puzzles: boards and managers falsely perceive stock options to be inexpensive because of accounting and cash-flow considerations.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 365KB | Date: Jun 2003 | Pages: 41

People who downloaded this item also downloaded

White Paper What Your HR Department Can Learn From FedEx: The Power of a Strong Brand
White Paper How To Apply EVA To I.T
White Paper EVA For Small Manufacturing Companies
White Paper SWOT Analysis

Top results from Reporting and Control

White Paper Smooth Transition: Preparing for IFRS
White Paper Getting Ready for IFRS
White Paper Control Costs with Flexible Processes - A Must-Read Business Brief for Growing Companies
White Paper Best-Practice Automation of Invoice Delivery from ERP Systems: Keeping Customers Satisfied, While Making the Move
White Paper CFO At the Center: An OCEG Whitepaper

» View all Reporting and Control listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).