A company can reduce its reported salary expense by paying some employees with share options instead of money

Name: A company can reduce its reported salary expense by paying some employees with share options instead of money
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

When a company issues share options as a form of compensation, it is not counted as an expense on the company's income statement until the options are exercised. Thus, this can reduce the reported salary expense of the company.

A Company Can Reduce Its Reported Salary Expense by Paying