Is Ritalin Over Prescribed (Argumentative Essay) Essays

Is ritalin over prescribed? (Argumentative essay) Matchmaker.com: Sign up now for a free trial. Date Smarter! Is ritalin over prescribed? (Argumentative essay) Is Ritalin the Answer to AD (H) D? The tousled brown hair that weaves so mischievously around his head may hint at the way he feels inside. He is seven-years-old and has already had to repeat a grade. He has an imagination that puts others to shame, but nothing seems to hold his attention for more than five minutes. He was recently diagnosed with Attention Deficit Hyperactivity Disorder, or what we call AD (H) D. This scene is all too familiar for individuals who discover that they, too, have this learning disorder as they progress from elementary school to college. And in today's society we want a "quick fix" to remedy our problems. Therefore doctors are prescribing the drug, Ritalin, to control AD (H) D. Although Ritalin is a widely used drug to control AD (H) D, there are other safer alternatives to combat this worldwide disorder. Ritalin, like many other drugs, has several side effects-some of which are severe. Ritalin is in a class of drugs called Methylphetamines. These types of drugs (also called Central Nervous System or CNS stimulants) affect our central nervous system that controls everything from thought process to everyday breathing. Ritalin's major side effects influences the cardiovascular system (palpitation, tachycardia, and increased blood pressure), the central nervous system (psychosis, dizziness, headache, insomnia, tic syndromes, attacks of Gilles de la Tourette), gastrointestinal (anorexia, nausea), endocrine/metabolic system (weight loss, growth suppression). Also, Ritalin is a fairly new drug (introduced in the early eighties). It hasn't been around long enough to study the long-term effects. Since Ritalin is a Methylphetamine (closely related to the amphetamine family, such as cocaine), it has a high rate of abuse. In light of methylphenidate's abuse liability, it is important to note the tremendous increase in availability of this substance and the expanded population (adolescents and adults) receiving prescriptions for the treatment of AD (H) D. For example, the production quota for methylphenidate has increased from 1,361 kg in 1985 to 10,410 kg in 1995 with the primary increases occurring in the last five years. This drug is abused in two ways. One way is for recreational purposes. The abusers use the drug as a form of "speed" to pick themselves up. They feel that they need this in order to be "alive" and full of life. The other way this drug is abused is very different. Students are using Ritalin as a study aid. They take a pill (either orally, or by crushing it and snorting-much like cocaine, or they emulsify it in water and inject it like heroine) and cram for an exam. College today has become more competitive. Students feel a need to have an "edge" over the others. They feel that Ritalin gives them this"edge." Another danger is that since Ritalin is related to amphetamines, it has almost the same physiological effects. A users body will build a tolerance to the stimulant, therefore requiring more drugs to sustain the same level of abuse. This is very dangerous since the side effects on a normal dose are already dangerous; it has the potential for addiction and overdose. Although there are many harmful side effects and social problems related to Ritalin, many advocates claim that Ritalin is a vital part of controlling AD (H) D. And in most cases Ritalin has shown proven results. It does exactly what it was designed to do. The treatment of the disorder in adolescents and adults both show positive results. But before being put on such a harmful drug, parents and students should try using other alternatives before using Ritalin. Most doctors can't accurately diagnose AD (H) D in a 20-30 minute visit. There are usually other factors that have to be considered but are often overlooked. There are ways a patient diagnosed with AD (H) D can overcome this disorder. Rather than taking Ritalin, a change in diet can have a big impact on ones attention. Stress levels, like diet, can cause loss of attention, making it hard to concentrate. A change in study habits can also be very beneficial to someone having a difficult time concentrating. So by eating healthy, eliminating certain"stressors," and finding a study habit that works for a person, he/she can overcome the disorder. Ritalin only treats the symptoms of AD (H) D, not the disorder itself. And the symptoms will always be there, unless something is done about it. So unless he/she plans on taking this harmful drug for the rest of their life, changes will

Beddow, Hymes and McAuslan Article

Beddow, Hymes and McAuslan Article Beddow, M., Hymes, R. McAuslan, P. (2011). Hair color stereotypes and their associated perceptions in relationships and the workplace. PSI CHI Journal of Undergraduate Research, 16(1), 1089-4136. Introduction A number of researches on hair color stereotypes and their associated perceptions prompted the current research. For instance, a research conducted by Lawson (1971) on hair color preferences enlightened on the affinity of certain colors.Advertising We will write a custom critical writing sample on Beddow, Hymes and McAuslan Article specifically for you for only $16.05 $11/page Learn More Clayson and Klassen (1989) also confirmed this enlightenment when they found differing perceptions towards various models presented in the study. Another important study was done by Feinman and Gill (1978) indicating that color preference might not be affected by gender. However, hair color of the population majority is preferred as Thelen (1983) found out. Other previ ous studies this topic focused on personality trait perceptions such as that done by Weir and Fine-Davis (1989) who found that people tend to perceive blondes as more popular, feminine and beautiful than brunettes and redheads. Rich and Cash (1993) reinforced the study by showing that broads were more popular and appeared more frequently in magazines. For hostility towards redheads, Heckert and Best (1997) reaffirmed the earlier study by Weir and Fine-Davis and extended to show that people perceive redheads to be exceptionally smart despite other perceptions. Kyle and Mahler (1996) contradicted some of the earlier findings by showing that people perceive brunettes to be competent and intelligent than blondes and red heads. Apparently, it is due to this lack of consistency in previous studies that promoted the current research. In order to have a defined focus of the study, Beddow, Hymes and McAuslan developed three hypotheses. First, they hypothesized that certain personality traits would be perceptually related to a certain hair color: that the participants would find blondes more attractive, feminine and immature; brunettes more intelligent, successful, mature and stronger work ethics; and redheads more aggressive and emotional. Second, they hypothesized that the male and female models with brown hair would be viewed more favorably in the work setting than in the date setting. Third, it was hypothesized that the typical stereotypes associated with hair color would become stronger when combined with situations common to these stereotypes. Indeed, the main goal of the study is to enrich the previous research by examining the effects of stereotypes with respect to hair color, setting and gender. Methods The tested sample consisted of 180 participants all of which were undergraduate students from a Midwestern university. These participants were of varying ages, from different ethnic groups, wore different hair colors and had completed an introductory level psych ology course.Advertising Looking for critical writing on anthropology? Let's see if we can help you! Get your first paper with 15% OFF Learn More For this qualitative study, the researchers examined the perception of the participants towards three color models with respect to work ethics, maturity, emotional, success and aggressiveness within the work and dating setting. This means that the variables included the three color models, work ethics, maturity, emotional, success and aggressiveness. The study design was a correlation in which the researchers compared some variables against others. Specifically, the authors attempted to investigate the relationship between specific hair colors and certain qualities including work ethic, maturity, emotional, success and aggressiveness. The study was also designed to compare the outcome on two broader circumstances: working and dating setting. The study procedure involved the development of questionnaire packets which directed the participants to pretend that they had visited a social network site to search for information about male and female target of the model. The participants then rated the individual models shown on the projector screen according to the directed scenario in the questionnaire packet. Later, the participants completed a brief demographic questionnaire. Results The results supported hypothesis number one that differential perceptions associated with hair color do exist. In regard to blonde hair stereotypes, the participants in this study considered blondes as more mature in a dating setting. For brown hair stereotypes, participants rated brown-haired men as the most masculine. The results also supported hypothesis number two that brown hair models would be viewed more favorably in the work setting than in the date setting. For the models, the participants perceived that the blonde model was the least successful in the worker setting while the brown and red hair as the most s uccessful in the same setting. Similarly, the brown hair models were perceived to be competent and industrious which suggests that that an emotional display in the workplace setting would contradict these qualities. Indeed, the brown haired model was perceived to be the most successful in work setting, consistent with the general stereotypes of competence and intelligence, thus resulting in success. The results also supported hypothesis number three that stereotypes associated with hair color would become stronger when combined with situations common to these stereotypes. For instance, temperamental redhead stereotype manifested itself in the participants, contrasting itself with the blonde model. However, the finding that failed to support hypothesis three as the participants did not perceive blondes to be more attractive in the dating setting as hypothesized.Advertising We will write a custom critical writing sample on Beddow, Hymes and McAuslan Article specifically for yo u for only $16.05 $11/page Learn More Discussion The researchers interpreted data in terms of probability and standard deviations of the measures associated with variables. For instance, a worker ethic measure with a standard deviation more than 1.00 was generally considered high as well as a probability greater than 0.01. However, in correlating two variables, the authors considered a difference in the range of 1 percent. In essence, a difference of 0.01 in standard deviation was a significant comparative measure. For instance, the authors regarded the gender models as having a variation in work ethic simply because the difference in standard deviation between male and female model was 0.01 (1.32-1.31). The major findings were that the blonde hair models were mature in dating implying dating experience. This aligns with the previous studies that blonde haired models stereotypes are attractive and flirts by the fact that the greater dating experience make them feel more uncomfortable. Regarding the brown haired models, the findings suggest that men are most masculine, competent and industrious which coincides with the previous studies. For instance, the success in work setting reflects a research done by Takeda et al (2006) which showed that blondes are underrepresented in the workforce. The findings also indicate that the red haired models are temperamental and aggressive in nature which is also in harmony with previous studies (Feinman Gill, 1978). Critical reaction The authors’ logic is sound and clear as depicted in the flow of the arguments. From the start, they highlight the purpose of the research as to enrich the previous studies by examining the effects of the hair color stereotype. This is followed by their reasoning that the previous studies identified the stereotypes but did not consider their effects. Through the analysis of data collected from a diverse sample that can represent the entire population, the authors demonst rate the different effects of various stereotypes identified in the literature. The data is logically analyzed for individual models with reference to the perception of the participants. The hypotheses developed by the authors are clear because they confirm the focus of the study and the variables relevant to the study. In harmony with the aim of the study, these hypotheses attempt to test the findings of the previous literature.Advertising Looking for critical writing on anthropology? Let's see if we can help you! Get your first paper with 15% OFF Learn More The various researches presented in the literature are adequate enough to suggest a deficiency in research pertaining to the effects of hair color stereotypes that were identified long time ago. However, the research articles used are not current and one may be compelled to assume that the authors omitted the contribution of contemporary gurus in this area. The various variables included in this study are work ethic, maturity, emotional, success and aggressiveness. This collection however, omitted several important variables including goal commitment, interaction and defiance. These variables might be important in future studies due to their direct relationship with the human way of thinking. With a particular focus on working and dating setting, the three variables are perceived by people as success factors. Therefore, it is justified to suggest that hair color stereotypes will be influenced greatly by these variables. The sample tested by Beddow, Hymes and McAuslan was appropriate for this study due to two key reasons. First, the sample was diverse in various characteristics that may influence human perception such as ethnicity and age. Second, the sample comprised of participants who had psychological freedom to give genuine responses after undergoing the physiological course. These facts suggest that the sample could represent the population that the authors based their conclusions on. The results of this study suggest that further research is needed on this topic because it is clear that the subjects were not exhausted. For instance, the findings were not enough to determine whether the participants perceived brown haired model to be more aggressive than the red haired models. In addition, there could be gaps in this research associated with the scale used to measure the results and the reliability of the instruments is not determined. A follow-up to this study may perhaps use a new methodology that can correlate the stereotype results of this study with other studies related to the topic. This methodology should have the capacity to identify the most relevant variables to study through experimental approaches. For instance, hypothesizing that the relationship between hair color stereotypes and the variables (work ethic, maturity, emotional, success and aggressiveness) is defined by other factors (commitment, interaction and defiance) would serve to include other relevant variables pertinent to human perceptions. In connection to coursework, this article reflects the various components of a research paper in addition to the issues that are emended in psychology topics which need research attention. The first and important thing in a research is to select a researchable topic. This topic will then determine the research focus in reviewing the literature as well as the deficiencies and weaknesses existing in the literature which require further consideration. Moreover, the article is important to a psychology student as a source of mo tivation for research. The authors have developed a research problem by simply acknowledging the efforts of other researchers. This study implies to the general public in that, it facilitates the understanding on how to categorize the people around them. Naturally, it is important to comprehend what surrounds us and appreciate what others can offer in order to live in harmony. Perhaps by understanding the hair color stereotypes, we avoid laying blame on individuals based on our observation. This is because people justify actions differently. Therefore, this study advices us to reach a viable conclusion before judging others and imposing penalties. References Beddow, M., Hymes, R. McAuslan, P. (2011). Hair color stereotypes and their associated perceptions in relationships and the workplace. PSI CHI Journal of Undergraduate Research, 16(1), 1089-4136. Clayson, D. E. Klassen, M. L. (1989). Perception of attractiveness by obesity and hair color. Perceptual and Motor Skills, 68(1), 19 9-202. Feinman, S. Gill, G. W. (1978). Sex differences in physical attractiveness preferences. The Journal of Social Psychology, 105(1), 43-52. Heckert, D. M. Best, A. (1997). Ugly duckling to swan: labeling theory and the stigmatization of red hair. Symbolic Interaction, 20(4), 365-384. Kyle, D. J. Mahler, H. I. (1996). The effects of hair color and cosmetic use on perceptions of female’s ability. Psychology of Women Quarterly, 20(3), 447-455. Lawson, E. D. (1971). Hair color, personality and the observer. Psychological Reports, 28(1), 311-312. Rich, M. K. Cash, T. F. (1993). The American image of beauty: media representations of hair color for four decades. Sex Roles, 29(1-2), 113-124. Takeda, M. B, Helms, M. M. Romanova, N. (2006). Hair color stereotyping and CEO selection in the United Kingdom. Journal of Human Behavior in the Social Environment, 13(3), 85-99. Thelen, T. H. (1983). Minority type human mate preference. Social Biology, 30(2), 162-180. Weir, S. Fine-Da vis, M. (1989). ‘Dumb blonde’ and ‘temperamental redhead’: the effect of hair colour on some attributed personality characteristic of women. The Irish Journal of Psychology, 10(1), 11-19.

Stakeholders Essay Example | Topics and Well Written Essays - 2500 words

Stakeholders - Essay Example Goodjik (2003) point out to the fact that management needs to build relationships with different stakeholders including shareholders, employees, customers, and society at large. This is only possible with increased transparency and accountability in practices on the part of the organizations and increased involvement or participation of the stakeholders in management decisions. The need to mobilize a sense of responsibility among stakeholders could help create an organizational context for participation and involvement and stakeholder arguments and opinions could be used to shift the balance of decisions in the interest of stakeholders. Active stakeholder participation is thus useful for any management perspective as considering stakeholder opinions and arguments could help create and strengthen partnerships between stakeholders and management at the corporate level. The stakeholder model assumes constructive partnership and dialogue between the management and the stakeholders includ ing the employees and is thus useful for promoting a beneficial relationship at the corporate level. This discussion focuses on the contributions of the stakeholders in business success and business performance of companies and emphasizes on the beneficial relationship between stakeholders ... The Role of Stakeholders: Stakeholders play an important role in an organization and affect corporate social performance and financial performance and Neville et al (2005) point out that a company's reputation could determine the corporate social performance and financial performance or CSP-FP relationships. Corporate social performance is related the stakeholders' resource allocation to an organization and how much stakeholders are ready to invest in or trust a company would in turn determine the performance and success of a company. In this context the stakeholder would trust or invest in a company based on the existing reputation of a company thus company reputation would determine stakeholder assessments and would also be relative to stakeholder expectations. Neville (2005) thus suggests that reputation of a company plays a key role in determining the CSP-FP relationship. Strategic management principles and competitiveness also change the CSP-FP relationship. Considering that corporate branding and reputa tion are important in achieving stakeholder trust, the role of marketing could be important for strategic advantages of any company as it helps build brand reputation. Maintaining stakeholder interests and stakeholder benefits is the major concern of companies and forms a major part of corporate social responsibility or CSR. Whitehouse (2006) used qualitative data from semi-structured interviews with representatives of 16 UK companies from different sectors and traced CSR policy development from identifying the meaning attributed to CSR to factors that help to implement CSR agenda. CSR objectives and policies are

Abraham Lincoln View of slavery Essay Example | Topics and Well Written Essays - 500 words

Abraham Lincoln View of slavery - Essay Example Lincoln in his speech in Illinois termed slavery as unjust and morally wrong. He confessed both privately and in public that he hated slavery, even though he was quiet about it for a long time. Lincoln also believed that all people were against slavery, insisted and maintained a view against it. Besides, he never regretted his words either did he take them back because slavery was not right. He also came out clear giving his view that he was not an abolitionist. His problem was the current constitution that never factored in the term slavery all the clauses that gave protection to the institution. He alluded that there was a need to abolish slavery and consider slaves as equal members of the United States. Abraham argued that both the black and white were equal. Therefore, they were entitled to equal opportunities and benefit to improve their lives making slavery was unfair.Therefore, the debate on the issue of slavery was among one of the questions that triggered the civil war both in the Western and Northern states as they fought to protect the union. However, at the same time the South states struggled to gain its independence under its constitution. Conversely, the South agrarian protected their slaves to take care of their large plantations and help in other tasks that they required. During the civil war, more Africans worked in the south offering labor. They contributed significantly to the South economy because they worked and at the same time, they were sold to pay debts.

Northern and Southern British Colonies of North America Essay Example for Free

Northern and Southern British Colonies of North America Essay The views of Northern and Southern British Colonies of North America developed different culturally factors including economically and political views, education, and religious instruction. Colonies in the north and south developed their own characteristics making them significant for the main land, and later becomes the new nation itself. Economic wise, the colonies had more differences than similarities. The North had small farms while the south had larger plantations. The northern colonies developed important trades on furs, timber, and other natural resources. The northern colonies developed into shipping center at New York, which originally belonging to the Dutch until 1664, where goods were stored. The English develop the harbors around New York and it became a major shipping center of the colonies. Meanwhile, the south developed important trades on agriculture, cotton, rice, and tea. At the time, the south had fewer raw materials than the North and mostly traded cotton. The cotton crop was the most important trade to the Southern colonies, it was nicknamed King Cotton. The reason of the South’s plantation out-sizing the North’s plantation was because the social aspect of each side. The Northern colony life mainly revolved the church members, when the south had more focus on the wealthy land owner. However, The North and south economics were similar to each other as well; for example, Tobacco and slavery. The North and South both also supported the use of indentured servants, people who came to America and was placed under contract to work for land owners for over a period of time, usually about seven year. Politically, the North and South had differences on who had the bigger voice in the society. In the North, Church membership was the only way to be accepted in to the colony. The church in the north controlled the laws and were the most accepted in the colony. Meanwhile, in the South, instead of the church members being superior, the land owners who wealthiest had control over the law. The Southerners tended not to be very religious due to the number of churches and religious institution in the south. Almost all the population of the South live on plantation and the plantation were very important to them more than the religious beliefs. Since The North was large on plantation, thousands of slaves were forced to work on the plantations. Politics in the colonies were empowered by charter called The General Court. The General Court made laws and governed the company. The colonists adapted the general court concept and used it to rule their colonies. The General Court ruled that freeman could only be male and a church member in order to make sure only religious men could decide government issues. The southern colonies were ruled by the oldest legislative called the House of Burgesses. The House of Burgesses established for judicial and administration which will runs by the representatives from each region in the colonies. Mercantilism played an important role in the lives of New Englanders because it was an economic theory and system that supported the establishment of the colonies. New England adopted the policy of mercantilism in order to control over the trade of the colonies. The colonies were influenced by the mercantilism policy due to the numerous trading prohibitions and taxes that applied on goods. The first mercantile regulation was the Acts of Trade and Navigation which established three main rules for colonial trade. Firstly, trade between the colonies could only be transported on English or colonial-built ships and operated by English or colonial crews; secondly, all goods could only pass through English port; and thirdly, certain numbered goods from the colonies could only be exported to England, including tobacco and sugar. But in the Southern Colonies, the Navigation Act had lowered tobacco prices which made the economies suffered. The slave population in the South vastly increased in order to maintain their wealth that dominated trade and politics throughout the colonies. Later on, there will be more similar acts to those of trade and navigation, such as the Staple Act of 1663, The Duty Act of 1673, and the Wool Act of 1699 which limited trade of good. Over time, the concept of mercantilism would rehabilitate due to the changing ideas and theories of various economic scholar such as Adam Smith, Abraham Lincoln, and Alexander Hamilton. Educations also played such an important role in the lives of New Englanders because people were really religious in the American colonies. In the New England colonies, the Puritans built their society based on the principles of Bible. The Puritans valued education because they believed that Satan was keeping those who couldn’t read from the scriptures. Education in this time period enabled people to read the Bible; therefore, parents able to teach their children to read the Bible, which was often the only book they had. Wealthy families usually sent their older children to study at colleges and universities. Girls usually learned their education in household skills at home. The education in the southern colonies, children normally began their education at home. Because farms and plantations created difficulty, plantation owners usually hired tutors to teach their children math, science, geography, history, and plantation management. Girls in the South usually taught to learn enough reading, writing, and math to run a house household and to attract a husband. As we speak of Education, The King James Bible had influence the culture of these two diverse regions because it was the only English translated book from the bible. The King James Bible established at Jamestown, Virginia in 1607; for the next few hundred years, just every English-speaking American grew up knowing the King James Bible better than any other book. It was the only book that has over one billion copies in print. Because of the well-known bible at its era, both colonies were persuaded the children to learn from King James Bible either from homeschooled or universities. The impact of the King James Bible on English language and western culture is beyond estimation; therefore, Education of the North and the South were always involved with the King James Bible. Works Cited. Channing, Edward. The Navigation Acts. Thenagain.info. Thenagain.info, n.d. Web. 31 Jan. 2013. Grischy, Janet. The Economic and Social Differences between the North and the South as a Cause of the Civil War. Helium. Helium, 23 Apr. 2009. Web. 30 Jan. 2013. Hockett, Homer C. Political and Social Growth of the American People 1492-1865. (New York: The Macmillan Company, 1940). KIRSCH, ADAM. Heirs to the Throne. The New Republic. Www.newrepublic.com, 11 May 2010. Web. 25 Jan. 2013. The King James Version: Its Influence on English and American History. The King James Version: Its Influence on English and American History. N.p., n.d. Web. 30 Jan. 2013.

African Art Essay examples -- argument essay

1. The pottery Seated Male Figure from Mali is an example of a non- frontal figure. This Sculpture displays a man sitting with his right leg bent and his left leg pulled up into his chest. He has his right arm over his heart and his left arm across his shoulder. There are many raised bumps on his body. His face id shifted slightly to the left and he appears to be concentrating. The caption explains that he is communicating with the gods.   Ã‚  Ã‚  Ã‚  Ã‚  2. The Orangun Eps Headdress from the Yoraba is a great example of a human figure with an entourage and a good display of hieratic scale. The ruler is sitting on a horse. Both he and th ehorse are greatly decorated in bright color clothing and the ruler is wearing a hat. In addition he is carrying a sword which is strapped to his arm. His entourage is amde up of numerous peolpe.Wives, children, musicains, messengers, soliders, and singers. this sculpture is a demostration of both social class and spirituality.   Ã‚  Ã‚  Ã‚  Ã‚  3. The Yoraba divination bowl of the mother and the child does have a patina. It is located on the babies entire body, the face of the mother and on her breast. The divination tray also has a patina around the rim on the carved faces of the Esu, the turtle, curled mud fish. and the curled snail.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  4. Many of the works in the gallery are made to display different qualities as a result they are not alwa...

Stock Options

Stock options increasingly dominate CEO pay packages. This column outlines when economic theory suggests that options-heavy compensation is in shareholders’ interests. The answer is that boards of directors are likely giving too many executive stock options. As boards of directors have sought to align the interests of managers and stockholders, executive stock options have become an ever-larger fraction of the typical CEO’s total compensation (Murphy 1999). Occasionally this practice has led to aggregate compensation payments that are so large as to mock the very connection they are supposed to encourage. What does economic theory have to say about executive compensation in a dynamic context? From a conceptual perspective, how effective is the granting of stock options in promoting the correct managerial decisions? How confident can we be that when a large fraction of a manager’s compensation assumes this form he or she will be led to undertake the same labor hiring and capital investment decisions that the shareholders would themselves want to undertake if they were similarly informed? Managerial incentives and the design of compensation contracts are the systemic implications of executive remuneration are taken into account, that is, in a general equilibrium context; one finds that for a contract to induce managers to take the correct business decisions in the above sense, it must naturally have the following three features. A significant portion of a manager’s remuneration must be based, in one way or another depending on the context, on her own firm’s performance. This concurs with the general message of a wealth of microeconomics studies. But this is not sufficient. The general contract characteristics must also be such that the manager is not, as a consequence of this first requirement, enjoying an income stream with time series properties that are too different from the time series properties of the income stream enjoyed by shareholders. This later restriction arises because, as is well known, the income and consumption position of a manager will determine his or her willingness to undertake risky projects. Optimal delegation requires that this risk attitude is not too different from shareholders’ own. The second feature may have to be modified if the manager’s risk tolerance is inherently different from that of the shareholders. The typical motivation for stock options (as opposed to pure equity positions) is precisely that the (recurrent) lack of income diversification of a manager may make her excessively prudent (in pursuit of a â€Å"quiet life†). This is the idea behind setting executive compensation according to a â€Å"highly convex† contract, i. e. ne where the upside is really good, but the downside is not so bad. This asymmetry is necessary induce risk averse managers to make the right investment decisions from the perspective of well-diversified stockholders. Are options-dominated contracts warranted? Shareholders receive both wage and dividend income, with the wage or salary component being, on average, the larger of the two. This is an implicati on of National Income Accounting. In the typical modern economy, about 2/3rds of GDP is composed of wages, with capital’s income account for only 1/3. Points 1 and 2 above therefore imply that an optimal contract will have both a salary (with properties close to those of the wage bill) and an incentive component (with properties naturally linked to the income accruing to capital owners) with the former being about twice as large as the latter. The incentive component may take the form of a non-tradable equity position (giving the right to regular dividend payments) or it may be more closely tied to the firm’s stock price itself. Furthermore, both of these components enter linearly into the manager’s compensation function. In today’s business world, the salary component appears to be too small relative to the incentive component. Hall and Murphy (2002) report that the grant date value of stock options represented 47% of average CEO pay in 1999. Equilar, Inc. , an executive compensation advisory firm, reports that stock options awards represented 81% of CEO compensation for the largest 150 Silicon Valley firms in 2006. What happens to incentives if the salary component is too small relative to the incentive component? Such an imbalance between the components of a manager’s compensation will lead to excessive smoothing of the firm’s output from the shareholders’ perspective. They typically prefer a highly pro-cyclical investment policy whereas, without further inducement, the manager will be much more reluctant to exploit the good opportunities and instead select a mildly pro-cyclical or, even, possibly an anti-cyclical investment strategy. This problem is well recognized, and it is the main justification for using highly convex managerial compensation contracts (i. e. options). Convex contracts overcome this possibility by reducing the personal (expected) cost to the manager of increasing the firm’s investment when times are good. If the manager’s preferences are well represented by a logarithmic utility function of consumption, however, then this latter argument does not apply; the manager’s actions will be insensitive to contract convexity. That is, even a compensation contract that is heavily laden with options will not induce managers to alter their behavior one whit. A straightforward application of this logic produces an even more striking result. If the manager happens to be more risk averse than would be dictated by log utility – an entirely plausible configuration – the only way to induce optimal managerial behavior is by using a highly unconventional remuneration package in which the manager’s compensation is inversely related to the firm’s operating results. This would mean a contract that pays high compensation when profits are low and vice versa. In this situation an options laden compensation package will induce the manager to behave in a manner directly opposite to what the shareholders would like. More generally, the degree of contract convexity must be related to the relative risk aversion of the manager as compared to the shareholders and if these quantities are not precisely estimated large welfare losses will ensue. From a theoretical macroeconomic perspective, the circumstances under which a highly convex compensation contract, for example, one that has a large component of options, will properly guide the manager in making the correct hiring and investment decisions are very narrowly defined. It would be surprising if these circumstances were fulfilled in the typical contract case.