This paper provides a contribution to the literature on executive share options by reporting the results of detailed case research conducted by the author in relation to two publicly listed Australian companies from the health / biotechnology sector. These sectors are chosen as the focus for the case studies reported in this article because of the relatively high degree of reliance placed by corporations within this sector of the economy on options as part of overall employee remuneration. The case studies demonstrate the material impact the inclusion of the cost of options would represent in relation to reported earnings were this to become a mandatory financial reporting requirement. The case studies also highlight the poor quality of disclosures being made in relation to options. It is concluded that significant reforms of reporting and disclosure policies would be beneficial.
Journal Of Law And Financial Management Collection
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