Which of the following is not a purpose of equity-based compensation?
A)Provide risk and incentives to employees.
B)Motivate employees by aligning employee and employer incentives.
C)Avoid compensation limits for executives.
D)Provides a low or no cost form of compensation.Employers have to repurchase shares or dilute ownership (incurring opportunity costs) to provide equity-based compensation.

Question

Quizplus · Accepted Answer

Employers have to repurchase shares or dilute ownership (incurring opportunity costs) to provide equity-based compensation.

Which of the Following Is Not a Purpose of Equity-Based