What is the drawback of stock ownership as a form of incentive pay?
A) Financial benefits mostly come when the employee leaves the organization.
B) Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer.
C) It causes the employers to lose control over their employees.
D) The employees will not benefit even if the organization is performing well.
E) Stock options do not provide any ownership to employees, instead offering an equivalent sum.

Question

Quizplus · Accepted Answer

Stock ownership as a form of incentive pay primarily benefits employees financially when they leave the organization or sell their shares, not during their tenure or through regular income.

What Is the Drawback of Stock Ownership as a Form