Question

"Granting stock options to executives is like allowing a professional footballer to bet on the outcome of games." Discuss this viewpoint. 

   "Granting stock options to executives is like allowing a professional footballer to bet on the outcome of games." Discuss this viewpoint.
Options, Futures, and Other Derivatives
Options, Futures, and Other Derivatives
John C. Hull 10th Edition
Chapter 16, Problem 5 ↓

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The idea is to align the interests of the executives with those of the shareholders, as the executives will benefit if the company's stock price increases.  Show more…

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"Granting stock options to executives is like allowing a professional footballer to bet on the outcome of games." Discuss this viewpoint.
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