1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alex41 [277]
4 years ago
11

Executive compensation packages often tie performance to bonus and incentive awards, supplemental retirement packages, perquisit

es, and severance pay, in order to encourage the management team to align their performance with organizational goals. Which of the following compensation proposals is most likely to be in the best interest of the company's sharehoiders?
A. A base salary of $500,000 plus a stock option package for 250,000 shares that mature in six months
B. A base salary of $500,000 plus perquisites worth $250,000
C. A base salary of $500,000 plus a stock option package for 250,000 shares, with 20% of shares maturing at the end of each of the next five years
Business
1 answer:
OLEGan [10]4 years ago
4 0

Answer:  

Option C is correct because base salary is guaranteed salary and the share option that is partially mature after every year. The value of the shares that mature after every year can be increased by the efforts of the CEO which aligns the shareholders and CEO interests in the organization's future prospect.

The Option 1 is good option but not a better option because the CEO perceive that as very long term commitment to the organization. After every year, when the CEO receives and held the shares, his actions are more oriented towards increasing the wealth of organization.

Option B is totally fixed salary which has no concerns with the future progress of the company. This salary doesn't aligns the interest of the shareholders and the management.

You might be interested in
What three colors are used to create the color white on a tv or computer screen?
vivado [14]
Red yellow and blue because when they are all moved at a high speed they combine to make white
8 0
4 years ago
Read 2 more answers
Anyone want a gf? im 16 (boys only)
N76 [4]

Answer:

girl no brainly is for school not dating

Explanation:

.

6 0
3 years ago
Read 2 more answers
Which of the following is NOT one of the main motivations and characteristics of an entrepreneur?
mojhsa [17]

Process of elimination:

Flexibility is a characteristic because entrepreneurs are designing their own path (path being vague for whatever their entrepreneurship is focused on), allowing for flexibility

Risk is a characteristic because being on your own and doing your own thing is much more unstable than simply working for a well-founded company

Innovation is a characteristic, because the flexibility that comes from being an entrepreneur allows for freedom of ones own ideas, making innovation more likely.

Profit is not a particular characteristic, due to the risk factor.

Profit is the right answer :D

6 0
3 years ago
The fundamental relationship between savings and investment spending in an economy is that: A. savings will increase as investme
Romashka-Z-Leto [24]

The correct option is B

<u>Explanation:</u>

In an economy, planned investment spending is always equal to planned saving. If actual saving falls short of (exceeds) planned saving, then actual investment falls short of (exceeds) planned investment.

That is the other part of the saving paradox. If an economy produces too much, such that saving is greater than planned investment, inventory will build up, giving signal to producers to reduce output, to restore equilibrium. Such investment scheme is suitable only to communist countries. Keynes has another investment theory in his liquidity story. But investment theories are equally a posterior.

Therefore, Option B is correct

8 0
3 years ago
​in a buying center, the person who has the formal or informal power to choose or approve the selection of a supplier or brand i
Archy [21]
The answer is that the person is known as "decider".

<span>There are many people present in an organization or company who are involved in the purchase decision, these people together makes a buying center. In buying center all those people have their own roles and are known as according to their roles. such as, purchasers, users, initiators, evaluators etc.</span>
7 0
3 years ago
Other questions:
  • Candice is a jewelry shop owner, specializing in beaded necklaces. For each of the following inputs, classify each item as a var
    14·1 answer
  • Americans have come a long way in reducing their overt prejudice among groups such as Hispanics, whites, blacks, Jews, and Asian
    7·1 answer
  • A fast-food restaurant serves the student community within a university campus. The restaurant newly introduces pocket-friendly
    6·1 answer
  • If actual sales totaled $450,000 for the current year (30,000 units at $15 each) and planned sales were $540,000 (45,000 units a
    15·1 answer
  • Which of the following statements about federal student loans is true
    11·1 answer
  • Why is international trade important for SA?
    15·1 answer
  • A(n)________ Answer assessment is periodically assessing the risk to organizational operations, organizational assets, and indiv
    13·1 answer
  • An accountant who blows the whistle on financial wrongdoing by his/her employer by going outside the entity violates:
    14·1 answer
  • Pecan acquires Southern in an acquisition reported as a merger. The acquisition results in $50 million in goodwill. The acquisit
    8·1 answer
  • essay question business studies describe the following economic issues hiv and aids piracy strikes porverty​
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!