Which of the Following Ensures That Managers Are Rewarded Only

question 13

Multiple Choice

Which of the following ensures that managers are rewarded only when a company performs better than its competitors?

• A) A constant strike price for executive stock options
• B) A strike price that increases with time
• C) A strike price that changes in line with an index of stock prices
• D) A strike price that is tied to reported profit

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Definitions:

Comparable Worth

The principle that jobs of equal value to an organization should receive similar pay, regardless of the nature of the job or who holds it.

Job Equity

The principle of ensuring fairness and equality in job conditions, rewards, and opportunities across all employees.

Physiological States

The conditions of the human body's various systems, including nutritional, neuroendocrine, and physical health statuses.

Psychological States

Conditions of the mind affecting emotions, behaviors, and thought processes of an individual at a given time.