The majority of present-day investigators have come to the general consensus, according to which for an objective evaluation of the top management activities in a company, it is imperative that the results of their performance be evaluated by the market, rather than by the subjective human factor (in the person of the same top managers). With all attractiveness of evaluating top-managers' motivation through the use of warrants, it is evident that this motivation, as any other, must have a certain value for the company that needs to be pre-evaluated. In order to valuate European options, the Black-Scholes model is used in most cases since it provides a conservative, i.e. lowest, option value. However, for more realistic corporate business presentation, a model with dividends for a European-type warrant should be used. In such a case, the warrant and stock values can be theoretically adjusted until the warrant value has become equal to zero. The stock value, however, will significantly decrease as compared to the original market value. But in actual practice, markets ineffectually respond to issuing warrants by companies; therefore, the stock value declines in a minor way. You may wish to decide upon that adjustment of the fair stock price, which would be following the first specification of the fair warrant price. In this case, the price of motivating top managers using warrants is calculated through multiplying the magnitude of reduction in the stock value by the number of the company shares in circulation.