CEO stock options: The silent dimension of ownership

J. McGuire, E. MATTA

Academy of Management Journal

April 2003, vol. 46, n°2, pp.255-265

Departments: Management & Human Resources

This study examines the ownership and performance implications of the exercise of CEO stock options. We find that the exercise of stock options has no impact on the levels of CEO equity and no relationship with subsequent firm performance. The decision to exercise stock options appears to reflect risk-balancing concerns rather than expectations for future performance.