_____ stock ownership guidelines establish ownership through a multiple-of-salary approach.
A) Traditional
B) Contemporary
C) Non-CFO level
D) Outside

Question

Quizplus · Accepted Answer

Traditional stock ownership guidelines typically establish ownership through a multiple-of-salary approach, which means that an executive's stock ownership is based on a multiple of their annual salary. This approach is widely used by companies to align the interests of executives with shareholders and promote long-term performance. Contemporary stock ownership guidelines may use different approaches, such as setting ownership targets based on a percentage of outstanding shares or relative to industry peers. "Non-CFO level" and "Outside" are not relevant options for describing stock ownership guidelines.

_____ Stock Ownership Guidelines Establish Ownership Through a Multiple-Of-Salary Approach