Which of the following is the LEAST likely result of using long-term income incentives to reward CEOs?
A) Frequent CEO turnover
B) Soaring CEO pay increases
C) CEO options losing value when stock market falls
D) Unclear connection between CEO pay and firm performance

Question

Quizplus · Accepted Answer

Long-term income incentives, such as stock options or performance shares, are designed to align the interests of CEOs with those of shareholders by rewarding CEOs for increasing the company's long-term value. This approach encourages CEOs to focus on sustainable growth rather than short-term gains, potentially reducing the likelihood of frequent CEO turnover. CEOs are incentivized to stay with the company and work towards its long-term success, as their rewards are tied to the company's performance over an extended period.

Which of the Following Is the LEAST Likely Result of Using