Executive stock option plans have little impact on the way management runs the firm.

Question

Quizplus · Accepted Answer

Executive stock option plans can incentivize management to make decisions that boost the company's stock price in the short term, but may not necessarily align with the long-term goals of the firm or benefit other stakeholders such as employees or customers. Therefore, they can have a significant impact on the way management runs the firm.

Executive Stock Option Plans Have Little Impact on the Way