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The Nasty Truth about CEO Pay

Harvard Business Review

The first CEO, let's call him Thrill-a-Minute Tom, has had a wild ride. Black-Scholes Valuation based on stock price at issue. He managed carefully and proactively and managed to keep the stock flat at $100/share from 2007 through to the present. Black-Scholes Valuation based on stock price at issue.

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What an Economist Brings to a Business Strategy

Harvard Business Review

Even more directly, the growth in financial options can be traced largely to the ease of valuing them, which is due to the Nobel-prize winning work of Fischer Black (the MIT economist and later Goldman Sachs partner who died before he certainly would have shared in the award), Myron Scholes (formerly of Stanford) and MIT’s Robert Merton.