Which of the following is not a purpose of equity-based compensation?
A)Provides both risk and incentives to employees
B)Motivates employees by aligning employee and employer incentives
C)Avoids compensation limits for certain publicly traded company executives
D)Provides a low- or no-cost form of compensation

Question

Quizplus · Accepted Answer

Equity-based compensation, such as stock options or restricted stock units, does have a cost to the company, including dilution of existing shareholders and potential impact on the company's financial statements. It is not considered a low- or no-cost form of compensation.

Which of the Following Is Not a Purpose of Equity-Based