Abstract
This article seeks to: a) introduce new models of incentives, including those that completely solve the problems of “Back-dating” and “Re-pricing” of employee stock options and equity-based incentives; b) introduce new theories of unwarranted wealth-transfers and Disruption Costs inherent in the use of Equity-based Incentives (“EBIs”). Several recent detailed studies found that there is widespread ESO/EBI-related fraud and non-compliance, which could have damaging effects on public confidence in financial systems and increase market volatility.
Subject
General Business, Management and Accounting
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