A _____ is a cash or stock award earned through achieving specific goals and is taxed as ordinary income.

Question

Quizplus · Accepted Answer

Performance share/unit plans are designed to reward employees for achieving specific goals or milestones. The award can be in the form of cash or stock, and it is typically taxed as ordinary income when received. Nonqualified stock options, phantom stock plans, and restricted stock plans all have different tax implications and may be awarded for different reasons.

A _____ Is a Cash or Stock Award Earned Through