The pros and cons for raising the options granted to the Chief Executive officers (CEOs). Introduction: The company’s compensation policies provide the managers an ownership stake by taking the grants of stock or stock options to the executive of the company. These grants provide the direct incentive to managers for raising the stock price mainly to make the company’s stock or stock option more valuable. As a result, the stock and option grants naturally tie managerial wealth to the wealth of shareholders. The monetary and non-monetary benefits paid to the employs by the employer for the work done are termed as compensation .

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Chapter 29, Problem 9P

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To discuss: The pros and cons for raising the options granted to the Chief Executive officers (CEOs).

Introduction:

The company’s compensation policies provide the managers an ownership stake by taking the grants of stock or stock options to the executive of the company. These grants provide the direct incentive to managers for raising the stock price mainly to make the company’s stock or stock option more valuable. As a result, the stock and option grants naturally tie managerial wealth to the wealth of shareholders.

The monetary and non-monetary benefits paid to the employs by the employer for the work done are termed as compensation.

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