Share option plans:
A)are illegal in America.
B)give employees the right to purchase company shares at a future date at a predetermined price.
C)directly award bonuses to employees based on cost savings and increased labor productivity.
D)tend to weaken employee commitment to the organization.
E)give employees the right to purchase company shares at a future date at a predetermined price and tend to weaken employee commitment to the organization.

Question

Quizplus · Accepted Answer

Share option plans give employees the right to purchase company shares at a future date at a predetermined price. They are a form of employee incentive and are legal in America. Option plans do not directly award bonuses to employees based on cost savings and increased labor productivity. While some may argue that option plans weaken employee commitment to the organization, others believe that they help align employee interests with those of the company.

Share Option Plans