Module : Discussion Forum
A common method utilized by corporations to compensate their leadership team is using stock options, which link the pay of the executive to the performance of the company stock in the market.
In theory, this approach helps to close the agency problem as it aligns the performance of the company and the compensation of the executive team, thus leading to executives making decisions that are in the best interest of company perform
What is your assessment of this approach?
Do you believe that the use of stock options has been successful in reducing the agency problem?
Have we attained enough evidence over time to suggest that we should continue to take this approach to executive compensation?
Please provide insight and support your commentary with an external source.
250 words or more
No cover page needed
Single or double spaee your choice
Two (2) western references please
References can be on the same page as the body of the paper.
No Investopedia or other pedia type sources please