Contributions for an optimal compensation model for option plants

Authors

  • Miguel Attaguile Universidad Nacional de Río Negro. Instituto de Ciencia, Tecnología Innovación, Cultura y Desarrollo, Río Negro, Argentina.
  • Nicolás Magrini Universidad Nacional de Río Negro. Instituto de Ciencia, Tecnología Innovación, Cultura y Desarrollo, Río Negro, Argentina.

Keywords:

adverse selection, financial options, agency theory, optimal remuneration, strike price

Abstract

In this work it is shown, by means of a stylized model that the use of compensation plans for stock options requires considering the relationship that must exist between exercise prices and the expected valuation of the price of shares in the market of capitals. Indeed, the objective of synchronizing managerial behavior with the interests of the owners of capital can be seriously affected, if the option contracts are written under strongly in the money conditions, creating expectations of high profits with less than optimal efforts.

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Published

2021-12-01

How to Cite

Attaguile, M., & Magrini, N. (2021). Contributions for an optimal compensation model for option plants. La Revista Argentina De Investigación En Negocios (RAIN), 7(2), 73–86. Retrieved from http://rain.ean.edu.ar:8085/rain/index.php/RAIN/article/view/132

Issue

Vol. 7 No. 2 (2021)

Section

Artículos

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