This article is a brief introduction to the logic and practice of the use of stock options to compensate executives. The Black-Scholes option-pricing model is used to estimate the value of option grants to the company. The note makes it possible to apply the settings of assessment in the context of executive compensation, and serves as a companion to the introduction of options, which give the reader the Black-Scholes option-pricing model.
This Darden study. "Hide
by Robert S. Harris, Robert M. Conroy Source: Darden School of Business 4 pages. Publication Date: February 5, 2007. Prod. #: UV0848-PDF-ENG