Many firms pay bonuses or make contributions to an employees pension fund on an annual basis but
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Many firms pay bonuses or make contributions to an employee’s pension fund on an annual basis but require a vesting period—often eight to ten years— during which the employee must stay with the company to obtain ownership of these assets. An employee who leaves the company before the vesting period loses any claim to the assets. How does vesting reduce moral hazard in employment relationships?
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Managerial Economics And Strategy
ISBN: 9780134899701
3rd Edition
Authors: Jeffrey M. Perloff, James A. Brander
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