School of Management and Labor Relations

Keyword Search

Elizabeth Jacobs: Price-Earnings Ratios and Employee Stock Option Grants 

by: Hawkins, David F.
Source: Harvard Business School 

An analyst questions the value of accounting measurement of earnings per share and stock option costs for equity valuation purposes. Besides being reluctant to make a sales recommendation to her clients based solely on an historical price-earnings ratio 'story,' Elizabeth had a number of concerns related to the heavy use of employee stock options as incentives and employee compensation in the high-technology sector...


Link: None
Publication Date: 2011-01-27
Pages: 4