Option-based Compensation: A Survey

T. Lehnert, R. Muurling

Research output: Contribution to journalArticleAcademicpeer-review

4 Citations (Scopus)

Abstract

Despite empirical research and theoretical validity, there is mixed evidence on whether employee stock options align interests between management and shareholders by turning managers into owners. What used to be a functional tool introduced in the 1950s, has gotten out of hand, as perceived by the press and popular literature. The main catalyst is the accounting treatment stock options receive. This paper provides an overview of the empirical research in the field and discusses the current accounting treatment of employee stock options and impending changes. We conclude by proposing alternative compensation tools.
Original languageEnglish
Pages (from-to)365-401
Number of pages47
JournalThe International Journal of Accounting
Volume39
Issue number4
DOIs
Publication statusPublished - 1 Jan 2004

Cite this