A Share Option Plan Will Be Defined as Compensatory If

question 117

Multiple Choice

A share option plan will be defined as compensatory if it has which one of the following characteristics?

• A) The discount from market price for the stock option is greater than either what would be reasonable in an offer of stock to shareholders or others or the per-share amount of issuance costs avoided by not issuing the stock to the public.
• B) Employees have 31 days or less from the date the purchase price is set to decide whether or not to enroll in the plan.
• C) Almost all full-time employees are able to participate in the plan.
• D) The purchase price is based solely on the market price of the stock on the purchase date.

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Definitions:

Spears's Characteristics

Refers to the core traits and behaviors identified by Larry C. Spears that are essential to servant leadership, highlighting qualities like empathy, awareness, and commitment to the growth of people.

Sympathy

Feelings of pity or sorrow for someone else’s misfortune, often with a desire to offer comfort or help.

Greenleaf Center

A resource or institution dedicated to the study, development, and promotion of servant leadership principles, inspired by Robert K. Greenleaf.

Servant Leadership

A leadership philosophy that prioritizes the well-being and development of team members, with leaders serving as supporters rather than controllers.