Why are stock options a controversial employee benefit, particularly for top executives?

Q: What kind of option can be used to incentive CEOs? Discuss the difference between stock option…

A: CEO play and major role in achieving the goal of company and help the company and achieve its…

Q: Discuss how earnings management is used as a tool to reduce sensitivity to political pressure.

A: Earning management is being associated with the use of discretionary accounting accruals in order to…

Q: you

A: Financial hardships Financial hardship refers to a situation in which a company cannot make payments…

Q: How would you explain what Employee Stock Options are? What are their benefits for a company and its…

A: We often hear about ‘employee stock options’ when we read about or discuss about employee…

Q: What do you think is the main issue of conflict between the stockholders and managers?

A: There are various conflicts of interest that can impact manager's decisions to act in shareholders'…

Q: “Stock options are generally a more appropriate form of compensation for lower-level managers than…

A: Employee stock options (ESOs) are a type of equity compensation granted by companies to their…

Q: What are some actions an entrenched management might take that would harm shareholders?

A: Entrenched management basically means that the senior management has grown so powerful that they can…

Q: It is an axiom that may be characterized by managers making decisions that conflict with the best…

A: Agency problem arises during the time of dissatisfaction or conflict of interest between the…

Q: Explain how a firm might use stock options in order to incentivize a manager to work in the…

A: It is a duty of a manager to work towards the interest of shareholders/origination because manager…

Q: Why might one expect managers to act in shareholders' interests? Give some reasons.

A: Managers would act in shareholders’ interests as a result of they need a duty to act in their…

Q: What is the possible agency conflict between inside owner/managers and outside shareholders? What…

A: What is the possible agency conflict between inside owner/managers and outside shareholders?…

Q: k options granted to almost all employees of the firms. What is the rational for offering stock…

A: Stock option is a financial instrument which is similar in providing the features of stocks. Stock…

Q: What are some of the pros and cons of using stockoptions to compensate managers?

A: Employee stock options: Stock options are the non-monetary incentives that are given to particular…

Q: In what way can Compensation and bonus policies significantly impact an Investment Advisor's ethical…

A: Compensation and bonus policies can significantly influence the ethical decision-making of…

Q: a.   The managerial salary package should include an incentive component   b.   Executive stock…

A: The agency problem exist in the corporations due to conflict of interest between the shareholders…

Q: Which of the following statements is FALSE? By tying compensation to performance, shareholders aim…

A: A dispute arising when people (the agents) delegated to look after the benefits of others (the…

Q: Why do you think active short sellers publish or disclose their short positions despite the…

A: A shareholder, sometimes known as a stockholder, is someone who owns at least one share of a…

Q: Write a brief description of the logic behind the development of the time value formula for…

A: Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: As a manager, would you use financial incentives to compensate your employees? If so, what would be…

A: Financial incentive: Financial incentives are given with the intention of motivating employees. The…