Share option plans:
A)are illegal in CanadA.
B)give employees the right to purchase company shares at a future date at a predetermined price.
C)directly award bonuses to employees based on cost savings and increased labour productivity.
D)tend to weaken employee commitment to the organization.
E)give employees the right to purchase company shares at a future date at a predetermined price and tend to weaken employee commitment to the organization.

Question

Quizplus · Accepted Answer

Share option plans give employees the right to purchase company shares at a future date at a predetermined price. This can be a way to incentivize and reward employees. Option A is incorrect as share option plans are legal in Canada. Option C is incorrect as it describes a different type of incentive plan. Option D is not necessarily true and varies based on the specific plan and company culture. Option E is partly correct but only option B is the best answer as it correctly describes share option plans.

Share Option Plans