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In theory, stock options should motivate executives to perform better - but in practice, they haven't always had that effect. Why?

In theory, stock options should motivate executives to perform better by tying their pay to their company's performance. So why do some argue the practice has just become a way for the highest earners to boost their salaries even further? Tim Harford turns to ancient Greek philosophy and Bill Clinton's presidency in search of the answer.

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10 minutes

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Mon 2 Dec 2019 04:50GMT

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A clerk studies his record of securties bought and sold in the basement of Manchester's stock exchange (Credit: Hulton-Deutsch Collection/CORBIS/Corbis via Getty Images)


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