The Most Common Approach to Motivating Executives to Make Decisions

question 35

Multiple Choice

The most common approach to motivating executives to make decisions that are in the best interests of stockholders is _____.

• A)high base salaries with few bonuses
• B)average base salaries with significant firm performance bonuses
• C)a long-term incentive plan using stock options
• D)average base salary with performance-based perks

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Definitions:

Grievance

Formal complaint filed by an employee or a union that management is violating some provision of a union contract.

Mediation

Dispute resolution process that uses a third party, called a mediator, to make recommendations for settling labor–management differences.

Strike

Temporary work stoppage by employees until a dispute is settled or a contract signed.

Lockout

Management decision to put pressure on union members by closing the firm.