Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/155259
Authors: 
Moretto, Michele
Rossini, Gianpaolo
Year of Publication: 
2001
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 96.2001
Abstract: 
Firms grant to their employees non-tradable stock options as an incentive device. Is the opportunity cost of issuing these options equal to the amount the company would receive if it sold the same options to outside investors? No, it is not, since the options granted to employees are non tradable, due to the incentive scheme to which they are related, and their value, i.e. the opportunity cost, may be lower or larger than the value of the corresponding tradable option.
Subjects: 
Employees stock options
opportunity cost
nontradable options
JEL: 
J33
G13
Document Type: 
Working Paper

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