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Employee Stock Option Compensation: A behavioral finance approach

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Over the last years sk options have become an integral part of the compensation of senior managers in Germany: Originating in the USA in the 1950s, this form of compensation gained increasing popularity among German corporations during the 1990s, so that by today far over 100 German listed companies grant sk option plans to their employees. Based on recent research the average German CEO ("Vor­ standsvorsitzender") receives approximately 10% of his salary in form of sk op­ tions. The ongoin...