Why are stock options programs criticized?
A) because they motivate executives to manage the company for the short term rather than the long term
B) because stock prices are not always directly under the control of managers
C) both of these
D) neither of these

Question

Quizplus · Accepted Answer

Stock options programs are often criticized for motivating executives to focus on short-term gains at the expense of long-term success. Additionally, stock prices are affected by numerous factors beyond the control of individual managers. As such, critics argue that stock options programs can incentivize behaviors that are not always in the best interest of the company or its shareholders.

Why Are Stock Options Programs Criticized