What are some problems with granting stock options to employees? Please describe at least two problems and explain why those problems may hurt shareholders interest.

If granting stock options to employees is so inefficient, then why do companies grant options?

Is it always desirable for financial managers to act solely in the interest of their shareholders? What about debt holders, customers, and employees? What about social responsibilities (e.g. social justice and environmental issues)? In your opinion, who else or what else should financial managers consider when making business decisions?