Question: The rationale behind granting stock options is to induce employees to work harder and be more productive. As the stuck price increases (presumably due to
The rationale behind granting stock options is to induce employees to work harder and be more productive. As the stuck price increases (presumably due to their hard work), the employees share in this added wealth. Another way to share this wealth would be to grant shares of stock, rather than options. What are the advantages and disadvantages of using stock options rather than shares of stock as employee incentives?
Step by Step Solution
3.56 Rating (160 Votes )
There are 3 Steps involved in it
In the past managers and boards of directors have viewed stock options and stock grants as almost free in the sense that they required no cash outlay ... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
91-B-C-F-O (95).docx
120 KBs Word File
