The handsomest fringe benefit in U.S. business is the stock option, a corporate incentive that enables a good many executives to make fortunes beyond their salaries. Like a warrant or a "call," the option is a device that enables a man to buy stock at a fixed price long after the shares have risen above that price. Last week's tax bill removes some of the glamour from the stock option, but will not easily stop the growth of an incentive that is now used by two-thirds of the nation's public companies.
Under the new tax rules, an executive who gets an...
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