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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › agency problem
evaluate the use of the share option schemes as a way of reducing the agency problem in stock listed companies
Is this a question or an instruction?!
this is a question l came across
So – explain what your problem is! Do not just set a question and expect an answer!!
If directors are given share options then they will want to increase the value of the shares. This is also what the owners (shareholders) will want as well and so it reduces the agency problem of directors doing what is not always in the best interest of the shareholders.