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The article examines the role of stock options in fostering effective management in the United States. The special tax provisions for options or restricted stock options encourage entrepreneurship and the development of inventions via monetary incentives. Stock options are in the public interest because they promote efficient and productive leadership in executives and help companies retain their best managers, which contributes to higher incomes and living standards among the employed, gains for stockholders, and a stronger economy in general. Topics include advice for implementing a stock option plan, the experience at Ford Motor Company, rules and regulations concerning options, and criticism against stock options.