The findings make perfect sense if you re-interpret them as Stock Options Boost Company Performance ONLY when given to KEY INDIVIDUALS In large public compa

The findings make perfect sense if you re-interpret them as Stock Options Boost Company Performance ONLY when given to KEY INDIVIDUALS In large public companies in most cases only senior executives are able to make an impact measurable enough to move the needle for the entire business. Therefore they are the ones you have to incentivize to make any kind of impact. In startups a few early employees can make a tremendous contribution or sink the business. Therefore giving them incentives makes a lot of sense. As a startup grows and the impact of specific individuals becomes diluted the stock grants naturally shrink. Do not forget non-US markets where employees often do not understand stock options at all and therefore have trouble getting excited about them as much as if you simply offer bonuses based on project completion. All of this may seem unfair to quite a few people, but guess what life is unfair. Get on with it. People do what they are incentivized to do.