Research Suggests That Stock-Option Pay Induces Executives to Make Decisions

question 40

True/False

Research suggests that stock-option pay induces executives to make decisions aimed at enhancing the firm's long-term performance.

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Definitions:

Shares Of Stock

Units of ownership interest in a corporation or financial asset, representing a portion of a company's capital.

Top Management

The highest tier of executives and decision-makers in a company, including roles such as CEO, CFO, and other senior leaders responsible for strategic decisions.

Financial Authority

An entity or individual with the power to manage financial matters, including investments, budget allocation, and financial planning.

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company, including financial planning and risk management.