An organisation's board decides that it needs to provide incentives for senior management to further the organisation's goals. The board decides to provide bonuses based on increases in share value, measured at the end of each financial year. Bonuses are to be paid in shares which can be held by the managers or sold on the market. What are the implications of introducing such a bonus system?
An organisation's board decides that it needs to provide incentives for senior management to further the organisation's goals. The board decides to provide bonuses based on increases in share value, measured at the end of each financial year. Bonuses are to be paid in shares which can be held by the managers or sold on the market. What are the implications of introducing such a bonus system?
Information Technology Project Management
9th Edition
ISBN:9781337101356
Author:Kathy Schwalbe
Publisher:Kathy Schwalbe
Chapter11: Project Risk Management
Section: Chapter Questions
Problem 6QQ
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An organisation's board decides that it needs to provide incentives for senior management to further the organisation's goals. The board decides to provide bonuses based on increases in share value, measured at the end of each financial year. Bonuses are to be paid in shares which can be held by the managers or sold on the market. What are the implications of introducing such a bonus system?
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