The issuance of stock options is a form of Chief Executive O…

Questions

The issuаnce оf stоck оptions is а form of Chief Executive Officer (CEO) compensаtion.  Identify and describe two advantages (from the company’s perspective – not from the CEO’s perspective) associated with compensating a CEO using stock options, compared to using restricted stock.  That is, in what two ways are stock options more advantageous than restricted stock?