But in its proxy statement, Oracle says the options align Mr. Ellison's pay with company performance because they will have value only if Oracle's stock rises.

WSJ: 'Pay for Performance' No Longer a Punchline

Most important, they get the right things done without constantly pursuing other options that may or may not align to the objectives.

FORBES: Too Busy To Lead? Develop Resilience

It is well known that stock options do not perfectly align the interests of managers and shareholders.

ECONOMIST: No soft option

In their traditional form, stock options haven't delivered on the promise to align shareholder and executive long-term interests because of three important limitations.

FORBES: How To Salvage Stock Options

High tech companies like Broadcom, rely on stock options to compensate talented employees who want to align their compensation with the success of the company.

FORBES: Former Broadcom CFO Bill Ruehle's Fight For Justice And His Victory (Book)

"When the planets align this can be a good strategy, " says Marty Kearney, senior staff instructor at the Chicago Board Options Exchange's Options Institute.

WSJ: Running With Scissors: Another Way Dividends Can Boost Your Stock Portfolio

Instead of looking for a proxy to share ownership, those options, price targets for shares and so on, why not simply align incentives by insisting that the management, the agents, must be substantial shareholders and thus also be principals.

FORBES: Solving The Principal Agent Problem: Apple Insists That Executives Must Hold Company Stock