Why you may want to skip the stock options

05/19/2009 | Harvard Business Review online

Freek Vermeulen, associate professor of strategic and international management at the London Business School, questions the practice of awarding top executives stock options. Such schemes assume that people do their best work when their pay depends on their performance. That may very well be the best case against such incentives, Vermeulen argues. "But are you really sure you want people like that managing your firm? People who will be lazy and only operate in their own interest if given a chance?"

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