Question: Explain why the value of ESOs and restricted stock to
Explain why the value of ESOs and restricted stock to a manager is generally less than their fair values, such as Black- Scholes value for ESOs, or stock market value for restricted stock.
Answer to relevant QuestionsExplain why, for large corporations, a low pay– performance relationship is to be expected.In 2003, Microsoft Corp. discontinued its employees’ stock option plan in favor of restricted stock, vesting over a five- year period. At that time, many of its already- granted ESOs were under water (i. e., exercise price ...On October 15, 2006, Mr. McGuire resigned, following a report from a law firm engaged by the board that he had benefited from late timing of ESO grants and had not disclosed a conflict of interest with the chair of ...To what extent do (i) Security market forces and (ii) Managerial labour market forces operate to motivate managers to work hard— that is, to operate their firms in the best interests of the shareholders? Do these forces ...Imax Corporation is a large entertainment technology company, with headquarters in New York and Toronto, and theatres worldwide. Its share price, which was as high as Can.$ 13.89 on the Toronto Stock Exchange in 2003, had ...
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