A corporation whose managers are separate from its owners will face zero agency costs when it uses stock options as part of its compensation package for upper managers True False
A corporation whose managers are separate from its owners will face zero agency costs when it uses stock options as part of its compensation package for upper managers True False
Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter5: Corporate Ethical Governance & Accountabililty
Section: Chapter Questions
Problem 13.2EC
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Question
A corporation whose managers are separate from its owners will face zero agency costs when it uses stock options as part of its compensation package for upper managers
True
False
Expert Solution
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Step 1
Stock options are the type of employee compensation that gives the recipient the right to buy a number of shares of the company's stock at a specific exercise price. it's a right of the employee and not an obligation.
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