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Search Overconfidence makes CEOs with too many stock options perform badly


Conventional wisdom has it that paying company bosses with a lot of stock and options aligns their interests with those of shareholders…“The whole point of the paper was to show that options really work,” says Professor Raghavendra Rau, a University of Cambridge finance professor, who wrote the paper with Michael J. Cooper of the University of Utah, Huseyin Gulen of Purdue University…

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