Which of the following would most likely be used by a firm that wants to retain the services of a top manager for a specified period of time?
A) restricted stock plan
B) golden parachute plan
C) stock appreciation rights
D) performance-contingent restricted stock

Question

Quizplus · Accepted Answer

With restricted stock plans, the firm usually awards rights to the shares without cost to the executive, but the employee is restricted from acquiring (and selling) the shares for, say, 5 years. The employer's aim is to retain the employee's services during that time. Stock appreciation rights (SARs) permit the recipient to exercise the stock option (by buying the stock) or to take any appreciation in the stock price in cash, stock, or some combination of these.

Which of the Following Would Most Likely Be Used by a Firm