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Stock options are a popular way for large, publicly held companies to compensate managers and executives. Frequently, the value of stock options granted to executives

Stock options are a popular way for large, publicly held companies to compensate managers and executives. Frequently, the value of stock options granted to executives can result in millions of dollars of additional compensation to executives already earning high six and seven figure salaries. Why do companies favor stock options to compensate executives? Do you see any potential problems with such a compensation program? Explain. Do you think that there should be limits on such compensation? Why or why not?

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