Executive Stock Options: Will it Work as a Good Governance Mechanism in all Scenarios?
Published By: Indian Institute of Management, Ahmedabad on eSS | Published Date: March , 2016In this paper, it is contended that ESoPs will not work as a good governance or mitigation mechanism in all types of firms. ESoPs can be an effective mitigation mechanism for a firm with dispersed ownership but it might not be the case for a firm with majority or block shareholding. This study extends the argument for ESoPs given to board members as well. It presents a framework to understand when it makes sense for a firm to incentivise top management with ESoPs
[W.P. No. 2016-03-55]
Author(s): Preet Singh, Chitra Singla | Posted on: Jun 25, 2016 | Views() | Download (812)