Tuesday Nov 15, 2016
We are studying stock option compensation in ACCT 3304. Here is an article about indexing stock options. As the author notes, it may be that a bull market carries a company's stock price higher, even though it is not outperforming its rivals. The author suggests indexing the option award to an index of the company's competitors.
The option award only kicks in if he outperforms his peer companies. Otherwise he can buy options like anyone else if he thinks he is doing a great job.
This makes lots of sense but probably won't be popular with CEOs.
Professor Elam 
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