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    Stock option programs

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    Explain the agency problem. How can stock option programs work to lessen the agency problem?

    © BrainMass Inc. brainmass.com April 1, 2020, 4:16 pm ad1c9bdddf

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    It encourages behavior by executives that promotes the interest of the shareholders (i.e. increasing the value per share). Stock options can promote this behavior in the long run if they ...

    Solution Summary

    Defines the agency problem and analizes the stock option program as a possible solution