| Abstract: | The use of options as a component of executive remuneration in large listed corporations in Australia grew materially between 1997 and 2002. This growth coincided with a significant degree of concentration of ownership of those options in the hands of a small cadre of board members and senior executives. We conclude that this phenomenon, to date essentially unexplored in the literature, has significant implications for the quality of governance outcomes in firms that use options in their incentive and remuneration systems . |
