Stock options as executive compensation You were hired by Sparkle.com, a telecommunications company, last year (exactly a year ago today). The company agreed to pay you £12,000 annual salary plus an option to buy in one year (i.e. today) 1,000 shares in Sparkle.com at £80. Today’s share price on the market is £50. 

a. What was your total annual compensation? 

b. What percent of your compensation was in the form of stock options? 

c. Answer question(a) on the assumption that today’s share price is instead £100. 

d. Answer question(b) on the assumption that today’s share price is instead £100.