Summary |
My aim of this is to examine share option schemes for a company’s senior managers and its employees against the back-ground of political debate in the US and UK on policies to contain the payment of excessive compensation to senior managers on the one hand, and to promote employee share ownership on the other. In the early 1990s there was debate in the US Congress about the excessive amounts of compensation being paid to the senior executives, and especially to the chief executive officers (CEOs), of US corporations. Share option compensation was a particular focus of interest. A number of major changes followed this debate. Tax law changes prevented public companies from deducting non-performance-related compensation paid to certain executives in excess of $1m. The Securities Exchange Commission (SEC) introduced new disclosure rules on executive compensation that significantly increased the disclosures of share option compensation in proxy statements.
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