Question: All three please Executive compensation packages often tie performance to bonus and incentive awards, supplemental retirement packages, perquisites, and severance pay, in order to encourage
All three please Executive compensation packages often tie performance to bonus and incentive awards, supplemental retirement packages, perquisites, and severance pay, in order to encourage the management team to align their performance with organizational goals. Executives are often compensated above and beyond their salary and benefits. Which of the following perquisites would not encourage managers to maximize long-run shareholder wealth? A percentage of the company's profits Stock options The use of a private jet Vision Tech is a software company based out of San Francisco. Its stockholders are mostly institutional investors and there is relatively little individual ownership. If these institutions dilute them positions and sell off their stake in vision Tech's stock to several individual investors, would direct shareholder intervention be more or less likely to motivate the firm's management? More likely Less likely vision stock price is currently trading at $37 per share. The consensus among analysts is that the intrinsic Tech's value of vision Tech's stock is $30 per share. Is vision Tech more or less likely to receive a hostile takeover bid? More likely Less likely
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