Yes, employee stock options give adequate incentives to keep companies profitable and lean, because they give employees a vested interest in the outcome. Employees are less likely to waste company money because they know that ultimately the money will comes out of their own pockets. Employees will work with more pride for their company.
Employee stock option programs are presented as an after thought to many benefits programs. They only offer employees the opportunity to purchase a very small part of the company, and many employees never become fully invested enough throughout their careers to even attend the annual shareholders meeting. If companies want employees to invest more money, they should place more emphasis on the long-term benefits of doing so.