According to agency theory, linking management pay to stock price changes through stock option plans...
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Accounting
According to agency theory, linking management pay to stock price changes through stock option plans and other forms of stock-based compensation should better align managements goals with those of stockholders. At the same time, if stock options are measured at their fair value, an expense would be recorded and any portion of managements bonus that is based on accounting earnings may be negatively affected. Search the FASB ASC database to determine whether companies are required to report an expense for employee stock options measured at the options fair value. Copy and paste your findings, citing the source. Then write a brief summary of what you found.
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