When he became CEO,Duane was given a stock option that does not require him to exercise his options in order to receive income.Which plan is it?
A)stock appreciation rights
B)discount stock
C)restricted stock
D)golden parachute

Question

Quizplus · Accepted Answer

Stock appreciation rights (SARs) are a type of compensation plan that allows executives to receive income without having to exercise their options. SARs provide the executive with the right to receive the appreciation in value of a certain number of shares over a set period of time. It is a cash-settled plan that allows executives to receive the difference between the current stock price and the price of the shares at the time the SARs were granted. Discount stock and restricted stock both involve some form of ownership in the company and require the executive to exercise their options to receive income. A golden parachute is a compensation plan that provides executives with a payout in the event of a change in ownership or control of the company.

When He Became CEO,Duane Was Given a Stock Option That