In the United States, tax advantages exist for compensating good performance by large-firm CEOs with stock option grants rather than by simply increasing salaries.

Question

Quizplus · Accepted Answer

This statement is true. In the United States, stock options are often used as a way to provide incentives for CEOs and other executives to improve firm performance. These options are treated more favorably under tax law than traditional salary increases, making them an attractive form of compensation for companies to offer.

In the United States, Tax Advantages Exist for Compensating Good