Stock Options - What Are They?

Berkshire Hathaway co-founder Charlie Munger says options are an expense, not a form of compensation. Many CEOs think this kind of manipulation is okay, but actually their duty, he writes. The late 1960s brought on an orgy of what one Charlotte investor called "the big guys in accounting from the bad" Once a system takes everybody's misgivings out, ethical behavior does vanish, Munger adds.