When used as executive compensation, how can unregulated stock option compensation result in distortions that harm other shareholders?

Group of answer choices

Stock options have never resulted in distortions that harm other shareholders, so it is a very useful form of compensation for executives.

Executives can exercise their option to temporarily set their own compensation when the stock market has increased to a level higher than the increase in their salary.

If executives temporarily misstate quarterly earnings so that the stock price temporarily increases to a level that is higher than the strike price of the stock option, executives can exercise their option and sell their overvalued stock at the expense of shareholders who buy that stock, which later decreases in value when quarterly earnings are re-stated to make necessary corrections.

If a corporation creates an employee stock ownership plan (ESOP), and executives are elected by the trust company that oversees the ESOP, they may have the option of taking options from the employee trust at a level that depletes the trust for employees.