Document Type
Report
Key Takeaways
In the weeks before stock options are granted, CEOs can gain from temporarily lower stock prices, resulting in a possible conflict of interest. • CEOs may act to suppress stock prices before an option grant by releasing information that is less positive in tone. CEOs who were underpaid or had more discretion did so more. • Simple remedies include issuing stock grants instead of options or issuing smaller grants more frequently.
Publication Date
2019
Source
Quigley, T. J., Hubbard, T. D., Ward, A., & Graffin, S. D. (in press). Unintended consequences: Information releases and CEO stock option grants. Academy of Management Journal. DOI: 10.5465/amj.2017.0455
Disciplines
Business
Copyright
© 2019, University of South Carolina
Publication Info
Quigley, T. J., Hubbard, T. D., Ward, A., & Graffin, S. D. (in press). Unintended consequences: Information releases and CEO stock option grants. Academy of Management Journal. DOI: 10.5465/amj.2017.0455, 2019.