One suggestion given in the Chapter 10 Strategic Focus for aligning agents' and principals' interests is to award stock options with a strike price that is the average of the last 90 days and that cannot be exercised for five years.

Question

Quizplus · Accepted Answer

This statement is true according to the information provided in Chapter 10 Strategic Focus. By awarding stock options with a strike price that is based on the average of the last 90 days, it ensures that executives are not able to exercise their stock options based on short-term gyrations in the stock price. Additionally, by making the stock options only exercisable after a period of five years, this aligns executives' interests with the long-term success of the company.

One Suggestion Given in the Chapter 10 Strategic Focus for Aligning