Stock Option Expensing - Publications - Faculty & Research

01 Oct 2002
News

Faculty Research Symposium

median annual pay of a Fortune 500 CEO is approximately $3 million in option grants, $1 million in bonus, and $1 million in salary. But in addition, that same executive will, over time, have accumulated holdings of View Details

20 Jul 2020
Op-Ed

It's Time for a Bipartisan Health Plan for Employers and Employees

HRA-Public Option combination, employers that are now compelled to continually raise out-of-pocket expenses to employees to control health care costs will no longer be caught in the middle between the... View Details

Keywords: by Regina E. Herzlinger and Richard J. Boxer; Health; Insurance

02 Sep 2010
What Do You Think?

How Transparent Should Boards Be?

however, attached conditions to this course of action, typically involving some kind of financial penalty. For example, Walter Blass suggested "a negotiated skipping of his bonus, or stock options... View Details

Keywords: by Jim Heskett

Web

Annual Cost of Attendance | MBA

$2,360 ($262/mo) Other Living Expenses $8,568 ($952/mo) Computer [Variable; not included Total] [$1,500] Total: $126,536 Married Tuition $78,700 Course & Program Materials Fee $2,800 HUHS Student Health Fee (SHF) $1,800 Student Health... View Details

Fast Answer

Bloomberg: Investment Management course tips

of hedge funds in Bloomberg? Market Indices How can I find market index prices, members, and movers in Bloomberg? How can I get comparative returns in Bloomberg? Mutual Funds How do I screen for or find performance and rankings of mutual funds in Bloomberg? View Details

01 Dec 2014
News

Research Brief: The Power of Could

Say you’re in a bind, a tough one. You’ve got cancer and your only hope is chemo—the problem is, it’s wildly expensive and you’re flat broke. Do you follow your moral compass, even if it means dying? Or do you leverage your knack for... View Details

August 2018 (Revised August 2019)
Technical Note

A Note on Compensation

By: Ethan Bernstein and Michael Norris

This note provides an overview of the important terms, concepts, and frameworks that a manager should know about compensation—whether it be their own or that of an employee. Because compensation in practice is fraught with pitfalls, this note presents an overview of... View Details

Keywords: Compensation Design; Benefits; Perks; Variable Compensation; Compensation and Benefits; Executive Compensation; Stock Options; Profit Sharing; Job Design and Levels; Labor Unions; Wages; United States

Citation

Educators

Purchase

01 May 2006
Research & Ideas

What Companies Lose from Forced Disclosure

additional career risk from the disclosure. Disclosures inform the labor market about ability, but management may be able to do relatively little to change the outcome of those disclosures. For example, a disclosure about stock View Details

Keywords: by Ann Cullen; Financial Services

15 Jul 2008
First Look

First Look: July 15, 2008

replication technique behind the Black-Scholes/Merton options model. The simulations focus on a single stock and a risk-free discount bond, which are used to replicate a contingent payoff. The underlying... View Details

Keywords: Martha Lagace

November 1994 (Revised November 1994)
Case

MW Petroleum Corporation (A)

By: Timothy A. Luehrman, Peter Tufano and Barbara Wall

Amoco Corp. is negotiating to sell a wholly-owned subsidiary, MW Petroleum, to Apache Corp. MW owns large reserves of oil and gas comprising many properties at different stages of engineering, development, and production. The proposed acquisition is a large one for... View Details

Keywords: Acquisition; Business Subsidiaries; Mining; Cash Flow; Stock Options; Financing and Loans; Price; Negotiation; Production; Valuation; Mining Industry

Citation

Educators

Purchase

Not only did Schultz foresee that a large-scale coffee shop chain was a lucrative business, but he maintained Starbucks lead through a combination of customer and employee satisfaction plans. Schultz’s plan to offer part-time employees View Details

Keywords: Restaurants & Lodging

14 Apr 2003
Research & Ideas

Andy Grove on the Confident Leader

are quite different. You have to align their incentives, which means heavily weight the compensation of the management team to stock options, so that what makes them rich makes the shareholders rich. AG: The unstated supposition is that... View Details

Keywords: by Walter Kiechel; Technology

Profile

Abena Nyantekyi-Owusu

and resources,” she observes. “It makes you take stock and prioritize what competes for your attention: cases, clubs, social obligations. You’re forced to be deliberate with your choices.” As her RC year comes to a close, Abena is... View Details

08 Jul 2002
What Do You Think?

Have We Carried the Concept of Alignment Too Far?

desires) ... Why should it be any different for the high-flyers? If they are truly good, is it really necessary to pay them more than they can ever hope to spend?" As Stever Robbins says, "Alignment is still a great idea. We've not seen alignment with recent... View Details

Keywords: by James Heskett

01 Dec 1997
News

"Economists are puzzle solvers..."

valuation. I looked at what they were doing and came up with an alternative - some say more robust - way to derive the formula that has since turned out to have very wide applicability. But at the time, the work only had direct implications for pricing over-the-counter... View Details

Web

Charitable Gift Annuity - Alumni

are determined by several factors. Benefits Quarterly fixed payments for life to you and/or the people you choose Charitable income tax deduction Reduction in capital gains and estate taxes A portion of the payments may be tax-free if you establish the annuity with... View Details

08 Oct 2010
What Do You Think?

Will Transparency in CEO Compensation Have Unintended Consequences?

can report from experience that differences in philosophy concerning compensation, say between Europe and the U.S., pose real issues. Not only do European CEOs and board members regard U.S. levels of CEO compensation as bordering on insanely generous, they are wary of... View Details

Keywords: by Jim Heskett

01 Jun 2007
News

Reaching New Heights

First-year students in Section G raised nearly $12,000 toward the construction of a new primary school in Nepal after hearing a presentation from former Microsoft executive John Wood. After a trek in the Annapurna region, Wood quit his job and seven-figure View Details

Keywords: Educational Support Services; Educational Services; News, Library, Internet, and Other Services; Information

01 Apr 2001
News

Ed Tian: Boardroom Revolutionary

myself. That sounds very simple, but it’s actually very difficult to do in China.” In addition, the top executives have a stake in the venture through stock options — another innovation. “That’s a very... View Details

Keywords: Alejandro Reyes; Telecommunications; Information

06 Feb 2006
What Do You Think?

Should CEOs of Public Companies Offer Earnings Guidance?

is advocating disclosure of CEO pay packages, including the value of large stock option grants which many might conclude produce similar pressures for short-term performance? What do you think? View Details

Keywords: by James Heskett; Financial Services

Publications