Which of the following statements regarding compensation policies is FALSE?
A) Increasing the pay-for-performance sensitivity comes with the added benefit of reducing managers' risk.
B) Stock and option grants give managers a direct incentive to increase the stock price to make their stock or options as valuable as possible.
C) By tying compensation to performance,the shareholders effectively give the manager an ownership stake in the firm.
D) During the 1990s,most companies adopted compensation policies that more directly gave managers an ownership stake by including grants of stock or stock options to executives.
Correct Answer:
Verified
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A)the system
Q3: Which of the following statements is FALSE?
A)Researchers
Q4: Which of the following statements regarding incentives
Q5: Regarding board size,researchers have found that:
A)smaller boards
Q7: Which of the following statements is FALSE?
A)A
Q8: Agency costs are best defined as:
A)the costs
Q9: Which of the following statements is FALSE?
A)The
Q10: Backdating refers to:
A)choosing the strike price of
Q11: Which of the following is/are NOT corporate
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