The Type of Compensation That Some Boards Think Is Better

question 94

Multiple Choice

The type of compensation that some boards think is better at truly aligning the incentives of managers with those of shareholders is a(n) ________.

• A) bonus
• B) restricted stock grant
• C) raise
• D) mixed compensation portfolio

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Definitions:

Negative Settlement Range

A situation in negotiations where the minimum offer of the seller is higher than the maximum offer of the buyer, leading to no agreement zone.

Counter Offer

A reply to an original offer in negotiations, where the responding party makes a new proposal that typically alters terms or conditions of the initial offer.

Mixed Motive

Situations or decisions that involve conflicting interests or incentives, often requiring a balance between cooperating and competing actions.

Conflicts of Interests

Situations where an individual's or organization's personal interests potentially interfere with their ability to make unbiased decisions in their official capacity.