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

Question

Quizplus · Accepted Answer

Equity-based compensation is not primarily meant to provide a low or no cost form of compensation. Rather, it is mainly used to align employee and employer incentives, provide risk and incentives to employees, and avoid compensation limits for certain executives in publicly-traded companies.

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