How do financial incentives for CEOs affect business outcomes? Bonuses have minimal effect, stock options have none

Financial incentives for chief executive officers (CEOs) are thought to motivate them to lead their company toward achieving important business objectives. In the first systematic review of all research on CEO incentives, researchers assessed the predictive effects of CEO financial incentives on certain business outcomes. Their analysis found a small effect of CEO bonuses and no effect of stock options on firms' return on assets the following year.