全球智库信息集成服务系统(G2TT): Optimal Exercise Prices for Executive Stock Options

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w7548
来源ID	Working Paper 7548
	Optimal Exercise Prices for Executive Stock Options
	Brian J. Hall; Kevin J. Murphy
发表日期	2000-02-01
出版年	2000
语种	英语
摘要	Although exercise prices for executive stock options can be set either below or above the grant-date market price, in practice virtually all options are granted at the money. We offer an economic rationale for this apparent puzzle, by showing that pay-to-performance incentives for risk-averse undiversified executives are typically maximized by setting exercise prices at (or near) the grant-date market price. We provide an operationally useful alternative to Black-Scholes (1973) for the purpose of both valuing executive stock options and measuring the incentives created by options. Our framework has implications not only for exercise-price policies, but also for indexed options, option repricings, exchanges of cash for stock-based compensation, and the design of bonus plans.
主题	Labor Economics ; Labor Compensation
URL	https://www.nber.org/papers/w7548
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/565095
推荐引用方式 GB/T 7714	Brian J. Hall,Kevin J. Murphy. Optimal Exercise Prices for Executive Stock Options. 2000.