In some long-term incentive plans, shares are awarded without cost to the executive, but forfeited if the executive leaves before a vesting period. What are these plans are called?
A) Stock appreciation rights plans
B) Restricted share unit plans
C) Book value plans
D) Stock options
E) Phantom stock plans

Question

Quizplus · Accepted Answer

These plans are called restricted share unit plans. They provide an incentive for executives to stay with the company for a certain amount of time by awarding them shares that will be forfeited if they leave before the vesting period has ended.

In Some Long-Term Incentive Plans, Shares Are Awarded Without Cost