Re-examining Stock Options as a Way to Compensate Executives

Now that an underperforming stock market and the excesses of Enron have focused new attention on the use and abuse of stock options as a way to incentivize senior managers, what changes, if any, should companies make in their design of compensation packages? The answer depends on each company’s philosophy and goals, but Wharton faculty and others suggest guidelines to help define the appropriate combination of executive incentives.

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