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A diversified stock option plan design plays a crucial role in the effectiveness of option contracts management and elimination of the free-rider problem. The aim of this study is to examine how a company can be used stock options in risk management and solving the agency problem rewarding employees and managers. The stock options plans offered by Starbucks engage all employees and executives into the ownership providing appropriate motivation and incentive and solving the agency problem. However, the study found that, this could also trigger more risk taking on the part of the top managers.
Afzal Ahmad. 2015. "Executive Stock Option Contract Increases Firm Value and Performance: A Case Study on Starbucks Company". Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C8).
Crossref Journal DOI 10.17406/GJMBR
Print ISSN 0975-5853
e-ISSN 2249-4588
v1.2
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Total Score: 148
Country: Bangladesh
Subject: Global Journal of Management and Business Research
Authors: Afzal Ahmad (PhD/Dr. count: 0)
View Count (all-time): 282
Total Views (Real + Logic): 1509
Total Downloads (simulated): 109
Publish Date: 2015 03, Sun
Monthly Totals (Real + Logic):
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