... the stock market.If the market rises by 20 percent, then the exercise price becomes $12a share. If the company’s stock only goes up to $11 a share, the option is out of the money. On the other ... options, if the stock goes up for whatever reason,then the options pay off. If the stock does not go up, then the optiondoes not pay off. Period. That’s the extent of the downside for the executive, ... won’t take theirlumps. They say the fact that they’ve underperformed shows thatthey need more motivation!Delves: It appears that there’s a hole in the market for CEO talent. Inother professions,...