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Options Plans — Some Australian Empirical Evidence
Author(s) -
CARLIN TYRONE M.,
FORD GUY
Publication year - 2006
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2006.tb00328.x
Subject(s) - remuneration , accounting , incentive , corporate governance , business , empirical evidence , quality (philosophy) , phenomenon , executive compensation , economics , finance , market economy , philosophy , physics , epistemology , quantum mechanics
The use of options as a component of executive remuneration in large listed corporations in Australia grew materially between 1997 and 2002. This growth coincided with a significant degree of concentration of ownership of those options in the hands of a small cadre of board members and senior executives. We conclude that this phenomenon, to date essentially unexplored in the literature, has significant implications for the quality of governance outcomes in firms that use options in their incentive and remuneration systems .