The paper by Steven Huddart is an excellent synthesis of the research into the timing of the exercise of options. Two worrying features of the conclusions are that ‘early exercise is a pervasive phenomenon’ and that ‘exercise is strongly positively related to volatility’. The first of these findings does not fit well with one of the key justifications for executive option schemes, namely goal congruence; particularly if the goals of the corporation are other than short term.


Corporate Governance Stock Option Option Scheme Executive Compensation Early Exercise 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Samuels, J.M. and A. Lymer (1996). Financial reporting of directors share options. British Accounting Review, 28, 249–266.CrossRefGoogle Scholar
  2. Samuels, J.M. and A. Piper (1998). Directors financial rewards in the water industry. Corporate Governance, 6 (3), 174–187.CrossRefGoogle Scholar
  3. Williams, A.P. (1994). Just Reward? The Truth About Top Executive Pay. Kogan Page, London.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1999

Authors and Affiliations

  • John Samuels
    • 1
  1. 1.University of BirminghamEngland

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