Compensation contracts that provide incentives for agents to increase organisational value might include:
I $\text {Cash-based boruses}$
II $\text {Share options}$
III $\text {Cash bonuses based on share price increases or targets}$
A) II and III only
B) I and III only
C) I and II only
D) I, II, and III

Question

Compensation contracts that provide incentives for agents to increase organisational value might include:
 I $\text {Cash-based boruses}$
II $\text {Share options}$
III $\text {Cash bonuses based on share price increases or targets}$
A) II and III only
B) I and III only
C) I and II only
D) I, II, and III

Quizplus · Accepted Answer

All options (I, II, and III) are forms of compensation contracts that incentivize agents to increase the value of an organization. Cash-based bonuses can motivate immediate performance improvements, share options align agents' interests with long-term shareholder value, and cash bonuses tied to share price targets directly incentivize agents to focus on actions that enhance stock market performance.

Compensation Contracts That Provide Incentives for Agents to Increase Organisational Cash-based boruses\text {Cash-based boruses}Cash-based boruses

Compensation Contracts That Provide Incentives for Agents to Increase Organisational $\text {Cash-based boruses}$