In this paper, we introduce a new type of employee stock options – dynamic employee stock options (DESOs). A cost-benefit analysis of DESOs is conducted against traditional employee stock options (TESOs). The results indicate that DESOs have many advantages over TESOs while they only cost the firm 4% more. We suggest that firms should choose DESOs over TESOs for the best interests of both the employers and the employees.
Huang, Yingping; Li, Tao; Xiao, Xisheng; Zhang, Xihui; and Olagues, John
"Dynamic Employee Stock Options,"
Annals of Management Science: Vol. 2
, Article 1.
Available at: http://digitalscholarship.tnstate.edu/ams/vol2/iss1/1