Which of the Following Statements Concerning Stock-Based Compensation Schemes for Executives

question 72

Multiple Choice

Which of the following statements concerning stock-based compensation schemes for executives is incorrect?

• A) They are the most objective and unambiguous way to compensate executives.
• B) They can align the interests of management and stockholders.
• C) They can dilute the equity of stockholders.
• D) The option strike price is typically the price that the stock was trading at when the option was granted.
• E) None of these choices are correct.

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