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 it offers an equivalent sum.

Question

Quizplus · Accepted Answer

Employees may not see a strong link between their actions and the company's stock price, especially in larger organizations. The link between pay and performance is even harder to appreciate because the financial benefits mostly come when the stock is sold-typically when the employee leaves the organization.

What Is the Drawback of Stock Ownership as a Form