The Rationale Behind Golden Handcuffs Is That the Plan

question 66

Multiple Choice

The rationale behind golden handcuffs is that the plan:

• A) Promotes longer executive tenure than other forms of compensation
• B) Offsets the limitations of focusing on market-based measures of performance
• C) Offers an incentive for executives to remain with the firm
• D) Provides incentive for the executive to create wealth for shareholders as measured by increase in the firm's share price

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Definitions:

Smoke Screen

A deliberate action or statement designed to obscure, confuse, or mislead.

Salesperson

a professional involved in the direct selling and promotion of products or services to potential customers, often requiring skills in communication, persuasion, and product knowledge.

Ergonomic Design

The process of designing products or work environments to optimize human well-being and overall performance.

Salesperson

A person who offers goods or services to clients with the goal of achieving or surpassing sales goals.