Backdating a stock option increases an executives motivation to perform well because they are not guaranteed a profit.

Name: Backdating a stock option increases an executives motivation to perform well because they are not guaranteed a profit.
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Question

Quizplus · Accepted Answer

Backdating a stock option means setting its grant date to an earlier time when the stock price was lower, thus guaranteeing an immediate profit if the option is exercised, not tying it to future performance.

Backdating a Stock Option Increases an Executives Motivation to Perform