Which of the following statements is FALSE?
A) Increasing the pay-for-performance sensitivity comes with the added benefit of reducing manager's risk.
B) Stock and option grants give managers a direct incentive to increase the stock price to make their stock or options as valuable as possible.
C) By tying compensation to performance,the shareholders effectively give the manager an ownership stake in the firm.
D) During the 1990s,most companies adopted compensation policies that more directly gave managers an ownership stake by including grants of stock or stock options to executives.
Correct Answer:
Verified
Q7: Which of the following statements is FALSE?
A)A
Q9: Which of the following statements is FALSE?
A)The
Q9: Which of the following is NOT a
Q11: Which of the following statements is FALSE?
A)Researchers
Q13: Directors who are employees,former employees,or family members
Q15: Which of the following is/are NOT corporate
Q16: Which of the following statements is FALSE?
A)The
Q18: Which of the following statements is FALSE?
A)When
Q19: A board of directors is said to
Q20: Directors who are not employees,former employees,or family
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