PT - JOURNAL ARTICLE AU - Christopher B. Waldorf TI - Structuring Option Grants to Pay for Performance AID - 10.3905/jpe.2002.320016 DP - 2002 May 31 TA - The Journal of Private Equity PG - 35--39 VI - 5 IP - 3 4099 - https://pm-research.com/content/5/3/35.short 4100 - https://pm-research.com/content/5/3/35.full AB - Options have become an ever-increasing part of executive compensation for start-ups, buyouts, and existing public companies. This article discusses the two major flaws with many current option plans, to wit: 1) that the exercise price does not change over time; and 2) that the time in which an executive can purchase the options is not limited. This article discusses how to address these problems and why options remain a vital compensation scheme.