Managerial compensation plans often provide executives with options to buy the firm's stock at a set price. The plan can either allow executives to exercise all of their options on one specific date or else have a fraction of them be exercisable in each of say the next 5 years. Staggering the exercise dates will have a tendency to increase unethical behavior. True or false?

The primary focus of all executives is their stockholders' well-being, which means trying to maximize the long-run price of the stock. Therefore, top managers never try to get compensation packages that are "too high," and they never seek unnecessary perks such as the use of private jets or vacation homes for personal business. Therefore, stockholders don't need to be concerned about the levels of executives' pay and other benefits. True or false?