Question

Donald, the CEO of a multinational organization, is given a reward by the organization in the form of a contract that allows him to purchase 5 percent shares of the company anytime in the future at a predetermined price. Three years later, Donald purchases those shares at half their market price. Additionally, he gets more motivated to work toward increasing the performance of the organization. In this scenario, Donald was given a _____.

Answer 1

Answer:

stock-option plan

Explanation:

Stock-option plan -

It is a form of equity compensation , which is given to the employees , in order to attract them , is referred to as stock - option plan .

According to this plan , the employees are provided with the right to buy some specific shares of the company they are working in , for some specific period of time  , and for some fixed amount .

It is like a regular call , for giving the right to the employees .

This plan helps the employees to get motivated to work hard and increase their performance .

Hence , from the given scenario of the question ,

Donald is provided with the stock - option plan .