Which is a common method of providing executive compensation by allowing top management to purchase stock at a fixed share price?
A) Stock splits
B) Arbitrage
C) Dividends
D) Stock options

Question

Quizplus · Accepted Answer

Stock options are a common method of providing executive compensation by allowing top management to purchase stock at a fixed share price. This gives the executives an incentive to increase the company's stock price, as they stand to benefit from the increase when they exercise their options. Stock splits, dividends, and arbitrage are not directly related to executive compensation through stock options.

Which Is a Common Method of Providing Executive Compensation by Allowing