[CRConrad]

> Either way, the employee is not made worse off because the CEO collects a fat stack of options at the expense of the shareholder.

Of course the employees are made worse off by that: If the shareholders didn't give all that money to the CEO, they could give it to the other employees in stead and be no worse off themselves. The CEO uses up all the available potential for employee compensation at the expense of everyone else.

Your thesis is just astonishingly weird.