STOCK OPTIONS IN THE CORPORATE GOVERNANCE PROCES S--BLES S1NG OR CURSE？

One of the main control mechanisms that shareholders have used to rein in rogue managers is compensation. Stock options play an important role in a typical managerial compensation package. In this paper, we discuss the advantages and disadvantages of stock options, which is widely used in the US. We analyze the importance of stock options in the corporate governance process and provide implications for the future use of stock options.