Much of the compensation of traders at Synalco, a metals trading company, is in the form of stock options. The amount of options distributed is based on the company's net profits. What sort of compensation plan is this?
A) profit sharing
B) gainsharing
C) merit based
D) ESOP
E) employee ownership

Question

Quizplus · Accepted Answer

This compensation plan is profit sharing, as the amount of stock options distributed is directly tied to the company's net profits.

Much of the Compensation of Traders at Synalco, a Metals