Question: 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
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? The use of a private jet Stock options O A percentage of the company's profits Vision Tech is a software company based out of San Francisco Its stockholders are mostly individual investors and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Vision Tech's stock, would direct shareholder intervention be more or less likely to motivate the firm's management? O More likely O Less likely Vision Tech's stock price is currently trading $28 per share. The consensus among analysts is that the intrinsic value of Vision Tech's stockis 535 per share. Is Vision Techn o ressikely to receive a hostile takeover bid? More likely Less likely
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
