Study casts doubt on the real efficacy of stock options as a way of rewarding manager performance

Designing an efficient compensation method for the managers of a business is a key element in ensuring a healthy ownership transition when a firm is sold, according to a new paper by Moritz Hiemann of Bocconi's Department of Accounting, published in the November 2023 issue of The Accounting Review under the title "Accrual Accounting in Performance Measurement and the Separation of Ownership and Control."