Rewarding corporate directors or top managements with liberal stock options under Employee Stock Option Schemes has become a common practice. There is no justification for diluting share capital by rewarding staff with stock options that often tempt executives to do everything – right or wrong – to pump up prices of their shares in order to maximise their returns. And indeed many executives manage to sell stocks as prices remain pumped up. The time has come to do away with stock options as part of executive compensation.
Suresh Kumar Aggarwal Mumbai
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