Introduction Enthusiasts have long argued that share option schemes provide management with a powerful motivation tool. Stock ownership aligns employee and shareholder interests will strengthening employee levels of commitment. In an increasingly competitive business environment, options are a way to attract and retain key employees such as managing director or Chief executive officer (COE). According to Whittker, employee must act and behave as genuine shareholders to equate investor and shareholder interests (Hayward, 2001, p. 8). This essay …showed first 75 words of 2486 total…

…showed last 75 words of 2486 total…but Can Irk Shareholders", Wall Street Journal, 16th December, p. SE. 2. Pepper, A., (1995), "Fair shares?", Accountancy, April, Vol. 115, No. 1220, pp. 158 159. Richards, R, (1995), "Employee share schemes", Australian Accountant, Vol. 65, No. 5, pp. 59-60. Ross, Thompson, Christensen, Westerfield and Jordan, (2001), Fundamental of Corporate Finance 2nd ed, McGraw-Hill Companies Inc. Wong, J. (1988), "Agency Theory and Accounting Choices: A Theoretical Framework", Pacific Accounting review, Vol. 1, No. 1, pp. 22-41 in Jones, S., Romano, C. and Ratnatunga, J. (1999), Accounting Theory, Harcourt Brace.