Management
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Note 1: Recently in the press, there have been articles about executive compensation with stock options.
This type of compensation occurs when an executive is granted the 'option' to purchase the company's stock at a certain price sometime in the future.
The theory is if the executive is effective, his management skills will lead to a higher stock price; and as a reward, the executive can purchase the stock at the earlier, lower price and lock in an automatic gain in his shares.
Conversely, certain companies have been falsifying the actual date when the stock options are granted to their executives.
Write a response describing the situation and the implications of the practice including any legal or ethical ramifications.
Note 2: When you research this situation on the internet (if quoting a source, please place "around their comment". Otherwise, use only a few outside sources, mostly in your words).
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Solution Summary
This solution provided ways on how to handle executives who recieve compensation with stock options.
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When it comes to executive compensation and stock options, this can easily become a major issue if it is not addressed immediately. This is in regards to the situation along with the legal and ethical implications involved. For example, because executives are given the opportunity to have stock options, their salary has increased. The problem is when they fail to keep the money within the company, or do not give it away to people who are poor and need it most. According to theory, one receives this based off their performance, and are able to reward themselves as a result of their good hard work with the organization.
As one can tell, this is a major problem that has to stop. Legally, they are putting their company at risk by providing opportunities for their CEO to gain more money at the expense of not giving other employees to receive it as well. For those people within the organization, that are not receiving it, then they are ...
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