A Disadvantage of Options as Instruments of Performance-Related Rewards Is

question 12

Multiple Choice

A disadvantage of options as instruments of performance-related rewards is:

• A)that it exposes the executives to market volatility.
• B)that it increases opportunistic behavior on the part of the employees who expect to earn these incentives.
• C)that the actual monetary gains from such incentives are usually lower than other performance-related incentives provided by organizations.
• D)that once an option has been exercised and the executive has sold her shares it will have no continuing effect on her incentives to make better future decisions.

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Definitions:

North Atlantic Treaty Organization

A military alliance formed in 1949 for mutual defense and cooperation among North American and European countries.

Senate Debate

A Senate debate is a formal discussion on proposed legislation or issues, taking place in the Senate chamber, where Senators express their opinions and argue for or against the matter at hand.

Conflict

A serious disagreement or argument, typically a protracted one, that can occur between individuals, groups, or nations.