Options are granted to top corporate executives because:
A)executives will make better business decisions in line with benefiting the shareholders.
B)executive pay is at risk and linked to firm performance.
C)options are tax-efficient and taxed only when they are exercised.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

Options are granted to top corporate executives as they can align their decisions with the benefit of shareholders, and their pay is linked to the performance of the firm. Additionally, options are tax-efficient, which means they will only be taxed when they are exercised.

Options Are Granted to Top Corporate Executives Because