Is a $100,000-a-year salary a big enough incentive for an executive to do his best work?
This question (and it was seriously asked) last week stirred up a first-class family fight in Federated Department Stores, Inc., fifth biggest U.S. department-store chain.*
Federated's brass hats were dead sure that the answer to the question was no. So, like many another corporation, they devised their own incentive plan, based on stock options (TIME, May 29 et seq.).
Under Federated's plan, 14 top executives would get options to buy 125,000 shares of Federated stock over a period of five years at approximately the market price....