Tufano, Peter (1993) Sally Jameson: Valuing Stock Options in a Compensation Package (293-053). [Case]
Details a thinly disguised situation faced by a recent Harvard MBA graduate who was forced by a prospective employer to place a dollar value on a grant of stock options. There are two objectives: 1) Serves as an introduction to option valuation, in which students have an opportunity to use market data to value an option in a realistic setting. 2) The setting permits a broader discussion of the wisdom of option-based incentive plans and the popular misconceptions of the value of option grants based on a widespread misunderstanding of how options work and how they are valued.
|Keywords:||finance, accounting, boards|
|Date Deposited:||01 Apr 2016 12:39|
|Last Modified:||01 Apr 2016 12:39|
Actions (login required)