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Chief Executive Officers (CEOs) of Major Corporations Are Often Paid

Question 12

Multiple Choice

Chief executive officers (CEOs) of major corporations are often paid mostly with stock options, as opposed to salaries and cash payments. These stock options often cannot be converted into stock and sold until years after they were issued. All this is ultimately intended to create incentives for the CEO to:


A) leave the company after a year or so.
B) lay off as many employees as possible.
C) increase the value of the stock by maximizing company profit.
D) outsource all production to other countries.
E) lobby Congress for subsidies and tax breaks.

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