CEO Stock Option Contracts: UK Evidence
Posted: 30 Aug 2000
In this paper we examine CEO stock option contracts using UK data for fiscal year 1997. We show how the portfolio of options varies with firm wealth; describe the structure of the contract (in terms of vesting criteria related to performance targets), and illustrate whether the option performance criteria is historically 'demanding.' Finally, we show how the pay performance term varies with the structure of the option contract. Our new evidence shows the complex structure of UK option contracts for CEOs.
JEL Classification: J31, J44
Suggested Citation: Suggested Citation