In some long-term incentive plans,shares are promised to the executive,but are forfeited if the executive leaves the company before a vesting period; what are these plans called?
A) Stock appreciation rights plans
B) Restricted share unit plans
C) Book value plans
D) Stock option plans
E) Phantom stock plans

Question

Quizplus · Accepted Answer

These plans are called restricted share unit plans where executives are promised shares but they only vest (or become fully owned) after a certain period of time. If the executive leaves the company before the vesting period, they forfeit the shares.

In Some Long-Term Incentive Plans,shares Are Promised to the Executive,but