%0 Journal Article %A Christopher B. Waldorf %T Structuring Option Grants to Pay for Performance %D 2002 %R 10.3905/jpe.2002.320016 %J The Journal of Private Equity %P 35-39 %V 5 %N 3 %X Options have become an ever-increasing part of executive compensation for start-ups, buyouts, and existing public companies. This article discusses the two major flaws with many current option plans, to wit: 1) that the exercise price does not change over time; and 2) that the time in which an executive can purchase the options is not limited. This article discusses how to address these problems and why options remain a vital compensation scheme. %U https://jpe.pm-research.com/content/iijpriveq/5/3/35.full.pdf