Exectuive Compensation with Stock Options Essay

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Companies sometimes use a stock option for compensation for executives, with the enticement that if they are able to purchase stock at low prices, and they will work harder to raise the stock cost through their work routine. Executive compensation with stock options have a lot of positive and negative effects that come along with it, whether it is an underlying ethical issue in the organization or it is debt from the giving and not receiving. The media exploits on scandal, because it sells. The stock option is a larger ordeal than just scandal that the media presents to the public. Executives that are offered this compensation have the power to control financial statements and take matters into their own hands to have the stock increase as they please. Executive compensation with stock option will reveal any principal ethical problems in a corporation, because if we approach the compensation as a test, it would be an acid test because it reveals the good or bad. It will let the CEO see where the ideals reflect once granted stock option and once they are revealed you know how to fix the ideals of the company and where to begin with the course. If the ideals do not include service in the community, to employ properly, and to reward a job done well, then there is increased chance of having an ethical problem. When you fail to define those ideals that make or made you the organization you are, the compensation will end with a possible ethical catastrophe. People can have a bad day and make a bad judgment call and act unethically, it is a flaw in each person, whether you are on a diet and sneak the candy bar or you are not working to your full capability, but still getting paid like you are. There are a lot of ethical issues that could come up like greed or being a person with ambition that is doing a good job, which is viewed as capitalism. They are different is

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