Currently, stock options are a major part of most top executives pay package. People in favor consider stock options an excellent incentive; after all, the executive is rewarded only if the value of the corporations stock goes up. Detractors see stock options as a bad deal; after all, the executive gets rewarded if the stock goes up for whatever reason, even if that reason is completely unrelated to his/her performance.

For this discussion you are required to do some independent research on the topic of stock option compensation and then using and referencing your research, answer the following four questions:

1. As a shareholder, how do you feel about making stock options a significant part of top managements compensation? Why?

2. As a top manager, how do you feel about stock options being offered as a significant part of your compensation? Why?

3. As a shareholder, how do you feel about the fact that top managers compensation is significantly offered in stock options, but not that of other employees? Why?

4. As an entry-level or mid-management employee, how would you feel if a part of your compensation were offered in stock options? Why?