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November 11, 2000 |
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Robert A.G. Monks |
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“Do Stock Options Provide the Right Incentives?” |
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Copyright © 2000 by Robert A.G. Monks |
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June 17, 1993 |
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Dear Bob: |
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“…And one of the basic problems is that
management has no way to judge by what criteria outside shareholders value
and appraise performance – the stock market is surely the least reliable
judge or, at best, only one judge and one that is subject to so many other
influences that it is practically impossible to disentangle what, of the
stock market appraisal, reflects the company’s performance and what
reflects caprice, affects the whims of securities analysts, short-term
fashions and the general level of the economy and of the market rather than
the performance of a company itself.” |
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Notes