Question

Consulting firms and human resource departments have spent innumerable hours attempting to develop executive compensation programs that will align the goals of a firm’s managers with those of the firm’s shareholders. Which of the following compensation packages is most likely to accomplish this task?a. An annual salary of $25D,0DD and a stock aption bonus package that provides 250,000 shares after five yearsb. An annual salary of $500,000 and a stock option bonus package that provides 100,000 shares after one yearc. An annual salary of $8DD,0DD d. An annual salary of $5DD,000 and a stock aption bonus package for a tatal of 250,000 shares, with 50,ODD shares vesting at the end of each of the next five years

Answer 1

Answer:

d. An annual salary of $500,000 and a stock option bonus package for a total of 250,000 shares, with 50,000 shares vesting at the end of each of the next five years.

Explanation: