But their economic drawbacks may outweigh their advantages Share and share unalike ONCE upon an Arabian night, sultans were paid their weight in gold. Today, such an approach to pay would leave the typical boss of a large American company sorely disappointed.
Bosses now prefer to be paid in share options, which are far more valuable than mere metal.
Inevitably, such gigantic sums have provoked envy. In 1980, he made 42 times as much. But put to one side questions of justice and inequality. Force down the thought that the chief executive's enormous share options may demoralise the deputy chief executive and make the company harder to manage. Ignore the bleating bondholder, who sees his risk rise as companies borrow to buy back shares to give to executives.