Share-based compensation rather than cash payments is used to encourage:
A) a focus on short-term results
B) higher compensation for executives
C) a focus on long-range results
D) lower compensation for executives

Question

Quizplus · Accepted Answer

Share-based compensation is used to align the interests of executives with those of shareholders, encouraging a focus on long-range results rather than short-term gains. This is because the value of shares is directly tied to the company's performance over time.

Share-Based Compensation Rather Than Cash Payments Is Used to Encourage