Executives with large proportions of their pay package derived from stock options tend to pursue aggressive ________ strategies.
A) local expansion and globalization
B) consolidation and restructuring
C) acquisition and divestiture
D) managerial and employee relations

Question

Quizplus · Accepted Answer

Executives with large proportions of their pay package derived from stock options tend to pursue aggressive acquisition and divestiture strategies because it leads to short-term increases in stock prices, which directly benefits the executives with vested stock options. This approach focuses on maximizing shareholder value in the short term.

Executives with Large Proportions of Their Pay Package Derived from Stock