The submission by the professors of the University of Murcia Susana Alvarez, Juan Samuel and Mary Baixauli Belda has been awarded at the XXIII International Congress of the European Academy of Management and Business Economics, held in Paris.
This research focuses on the problem of assessing the incentives to take risks that trigger option contracts on the shares of the company given to managers as part of their compensation, known as stock options.
The results of the study, which analyzes the effects of stock options incorporate minimum performance objectives, highlight the importance of considering the behavior of early exercise of managers in the design of these contracts, to create in them the appropriate incentives According to company goals.
Source: Universidad de Murcia