Why would a firm most likely offer executive stock options in a compensation package?
A) to offer the executive long-term retirement security
B) to provide the executive with guaranteed bonuses
C) to encourage the executive to increase the firm's value
D) to prevent the executive from negotiating with other firms

Question

Quizplus · Accepted Answer

Long-term incentives aim to encourage the executive to take actions that drive up the value of the company's stock and include things like stock options. Stock options generally give the executive the right to purchase stock at a specific price for a specific period.

Why Would a Firm Most Likely Offer Executive Stock Options