Share-based compensation rather than cash payments is used to encourage
A) a focus on long-range results
B) a focus on short-term results
C) higher compensation for executives
D) lower compensation for executives

Question

Quizplus · Accepted Answer

Share-based compensation is typically tied to company performance and stock price, which encourages employees to focus on long-range results and improving the company's financial position over time. It also aligns their interests with those of the company's shareholders, as the value of their compensation is tied to the stock price.

Share-Based Compensation Rather Than Cash Payments Is Used to Encourage