I think tying compensation to stock price makes sense... if you work for a company till retirement. If these stock options are the difference between covering your retirement or working into your seventies, employees would think long-term.

If https://www.cnbc.com/2019/12/03/a-tech-firm-tried-it-all-to-... is to be believed, average tenure at Google is just over a year. That turns stock options from a retirement fund into a nice bonus to cover looking for a new job.