This study aims to analyze the effect of employee and management stock-options on actual sharerepurchases. We used a sample of 634 French firms belonging to the SBF 250 index during the period between 1999 and 2002. Our results show a strong correlation between stock options with the repurchases. Therefore, it appears that the stock options provide firms with incentives to repurchase shares in order to avoid the earnings dilution that could be caused by option exercise. However, we do not find a strong negative relationship between increase in dividends and management stock options. It seems that management options do not create an incentive to substitute repurchases for dividend growth, although the payment of dividends reduces the value of options held by managers. Key Words: Share Repurchases, Dividend Policy, Stock-Options, Management, Employee.