TAILIEUCHUNG - Lecture Personnel economics in practice - Chapter 12: Options and executive pay

After today’s lecture, you will be able to address the following questions: When should a firm use stock options? How should options be structured? What is the best metric to measure executive performance? Who is responsible for stewardship of the corporation? Why are important checks and balances often underutilized/underemphasized? | Chapter 12: Options and Executive Pay 4/8/2013 Chapter 12: Options and Executive Pay Employee Stock Options Stock Options – A Brief Overview Should Firms Grant Employees Options? Source of Firm Financing Employee Self-Selection Reducing Turnover Options as Incentive Pay Performance Measure Pay-Performance Relationship Granting Options Over Time Other Incentive Effects of Options How Do Employees Value Options? Executive Pay What is the Most Important Question? Executive Pay for Performance Other Incentives and Controls Do Executive Incentives Matter? 4/8/2013 Chapter 12 – Options & Exec Pay After Today’s Lecture, you will be able to address the following questions: When should a firm use stock options? How should options be structured? What is the best metric to measure executive performance? Who is responsible for stewardship of the corporation? Why are important checks and balances often underutilized/underemphasized? 4/8/2013 3 Introduction Employee options differ from traditional

• Kinh tế học
• Personnel economics
• Kinh tế học
• Personnel economics in practice
• Employee stock options
• Incentive pay
• Executive pay
• Setting hiring standards
• Making decisions
• Imperfect information
• Screening job applicants
• Worker’s productivity
• Signaling more formally
• Investment in skills
• Investments in education
• On the job training
• Rent sharing
• Managing turnover
• Retention strategies
• Bidding for employees
• Decision making
• Benefits of centralization
• Benefits of decentralization
• Organizational structure
• Network structures
• Coordination mechanisms
• Job design
• Optimal job design
• Intrinsic motivation
• Advanced job design
• Group decision making
• Implementation of teams
• Performance evaluation
• Performance evaluation design
• Quantitative performance measures
• Rewarding performance
• Pay performance shape
• Performance pay methods
• Career based incentives
• Outside hiring
• Promotion probability
• Improving employee sorting
• Implementation of benefits
• Cafeteria plans
• Human capital investment
• Internal markets
• Motivating creativity
• Employment relationship
• Perfect competition
• Imperfect competition
• Complex contracting
• school administration
• personnel administration
• business management
• production management
• personnel management
• Political economy