a way to attract and retain key employees such as Chief Executive Manager (COE). The ultimate objective of a corporation is to maximize shareholder value, but at issue is how this is to be achieved? The answer lies in precisely how employees are motivated so that their interests coincide with those of shareholders. Stock options can be a valuable motivational mechanism to align the CEO's interests with those of the shareholders. For example, Howard Solomon, CEO of Forest Laboratories, received a total compensation of $148.5 million in 2001. This represented $823,000 in salary, $400,000 in bonus, and $147.3 million in stock options that were exercised. However, shareholders also did well-receivin
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