Publications
Publications
- April 2002
- HBS Case Collection
Sally Jameson: Valuing Stock Options in a Compensation Package (Abridged)
By: Peter Tufano
Abstract
Details a thinly disguised situation facing a recent Harvard MBA graduate who was forced by a prospective employer to place a dollar value on a grant of stock options. There are two objectives: 1) Serves as an introduction to option valuation, in which students have an opportunity to use market data to value an option in a realistic setting. 2) The setting permits a broader discussion of the wisdom of option-based incentive plans and the popular misconceptions of the value of option grants based on a widespread misunderstanding of how options work and how they are valued.
Keywords
Citation
Tufano, Peter. "Sally Jameson: Valuing Stock Options in a Compensation Package (Abridged)." Harvard Business School Case 202-117, April 2002.