RT Journal Article
SR Electronic
T1 Structuring Option Grants to Pay for Performance
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 35
OP 39
DO 10.3905/jpe.2002.320016
VO 5
IS 3
A1 Christopher B. Waldorf
YR 2002
UL https://pm-research.com/content/5/3/35.abstract
AB 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.