SOLUTION! Compose a 500 words assignment on wall street journal article. Needs to be plagiarism free!

Article Writing

Compose a 500 words assignment on wall street journal article. Needs to be plagiarism free! Assignment 14 October 2009 Option grants draw scrutiny The article “Option grants draw scrutiny” was published in Wall Street Journal on October 13, 2009. (Maremont) The article is about the criticism that the executives of target companies in a merger-acquisition deal are provided with large stock options right at the time the deal gets confirmed. This leads to the executives of the target company earning more than they deserve leaving the share holders in a sea of trouble. On the other hand, criticism is on a positive note, where the shareholders benefit through mergers initiated by the executive officers for their own personal revenue sake. Thought this timing of granting options cannot be termed as illegal, critics believe that providing such grants at the time of merging helps the parent companies acquire the target with low cost premium relative to other bidders.

Haven’t Found The Relevant Content? Hire a Subject Expert to Help You With
SOLUTION! Compose a 500 words assignment on wall street journal article. Needs to be plagiarism free!
Post Your Own Question And Get A Custom Answer
Hire Writer

As discussed in Chapter 41, stock options were given to the employees of the company in order to provide them with motivation towards team success and organization improvement. But it could lead to ill effects as such the employees trying to do illegal activities like rewriting books in order to keep their options in a profit rate. The article proves as evidence to what was discussed about the illegal activities. The allowance of extra shares to executive officers during a pre-deal affects the value of share holders stocks in a large way.

The grants of the shareholders are affected in two ways, one being positive to them, the other in a negative way. The shareholders can be deprived of their share value with the dilution of its cost by providing extra shares to officers. Or, they can benefit with the incentives that are obtained through the merging with other companies. The executive officers, due to the extensive revenue they get through takeover bids promote mergers and acquisitions in a large way. Examples of such merger acquisition done in the past two years include the taking over of Marvel pictures by Walt Disney, where the CEO reaped $34 millions in cash through selling stock options.

The allowance of providing pre-deal options to executives is termed as a selfish act by critics and is compared in terms with another activity considered to be controversial, “SpringLoading”. Though the details were discussed with the SEC, they have declined to take any direct action against it except for ruling that the acquiring companies have to show their annual proxy statements. As the article suggests, the executives convert their options to shares as soon as the deal closes out. This was discussed in the chapter on how the executives “reprice” stock values so that their shares do not get affected in case of any loss. The basic idea of stock options was to motivate the employees as mentioned by EDS in the article, “to motivate executives to achieve long-term goals designed to create sustainable shareholder value and reward them to the extent they achieve such goals.” (Maremont) But the current reports are in direct contrast as to how the executives use up the stock options for individual profit.

The article provided a practical knowledge of whatever that was discussed in the course materials. The article was directly related with the stock options, their purpose and their way of usage. The article gave a clear explanation of the executives use the stock options to their benefit, what is the profit they gain from it and what are the effect of it on share holders and share market. The article also provides a possible solution on how to overcome this scenario and make the use of stock options in a positive way. The article has given a great insight on the dealings and discussions that goes off the record in a merger acquisition scenario that can be greatly useful in aiding further understanding of the course.

Works cited

Maremont, Mark. Option grants draw scrutiny. Wall Street Journal. 13 Oct. 2009. Web. 14 Oct. 2009.

Written Assignments
Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Why Choose Us?

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Written Assignments has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keeps up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention to deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Written Assignments, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email:

Try it now!

Order Now to Get 20% Discount

We'll send you the first draft for approval by at
Total price:

How our best essay writing service works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Written Assignments has stood as the world’s leading custom essay writing paper services provider. Once you enter all the details in the order form under the place order button, the rest is up to us.


Cheapest Essay Writing Service

At Written Assignments, we prioritize all aspects that bring about a good grade such as impeccable grammar, proper structure, zero plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.


Admission and Business Papers

Be assured that you’ll get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.


Editing and Proofreading

Our skilled editing and writing team will help you restructure your paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.


Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as many details as possible in the place order section.