If the acquire, has been granting options as part of its compensation packages." (Morgensen, 1998) This is important, because it shows how these kinds of changes are highlighting a lack of ethics inside corporate America.
Once this begins to take place, it is sign that the moral fabric of the country is eroding. As more executives are lured into following different practices, despite the fact that they are giving them an unfair advantage over everyone else. This is a sign that the values inside a variety of corporations has completely shifted from: benefiting shareholders to increasing the amounts of compensation that select groups of employees are receiving. Over the course of time, this is used to change the views that executives have about: a host of different activities and the way their employer is dealing with them. (Poerio, 2006)
Both the general public and regulators have been aware of this practice for over ten years. The group that needs to become even more concerned about the problem should be: Congress. The reason why, is because this practice has become a major issue of contention...
As, they have been using this strategy and many others to offer their executives large compensation packages. This is despite the fact that the country has went through a major economic implosion, as many executives are still embracing this kind of thinking. Once this occurs, it means that it is only a matter of time until these kinds of practices will be used in the future. While at the same time, they are not fully disclosing about: how they are offering their managers stock options. If left unchecked, this practice could be a part of a basic strategy for corporate executives to: inflate their earnings and hide the salaries that they are receiving. This will reduce the public's confidence in: the financial markets and the quality of the information that is being provided. (Poerio, 2006)
Bibliography
Morgensen, G. (1998). Stock Options are Not Free. Forbes. Retrieved from: http://www.forbes.com/forbes/1998/0518/6110212a.html
Poerio, M. (2006). Stock Option Issues. Stay Current. Retrieved from: http://www.paulhastings.com/assets/publications/527.pdf
