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Yahoo Finance: Giving a CEO too many stock options can make a company perform worse

Companies that gave their CEOs the most stock options saw their share prices lag behind the industry average over the following 36 months…“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. “It was a little surprising…

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