________ provide incentive for the executive to create wealth for shareholders as measured by increases in the firm's share price.
A) Stock option grants
B) Golden handcuffs
C) Golden parachutes
D) Cash-based plans

Question

Quizplus · Accepted Answer

Stock option grants provide executives with the option to purchase company stock at a discounted price at a future date, incentivizing them to increase the firm's share price and create wealth for shareholders. This aligns the interests of executives with those of shareholders, as their compensation is directly tied to the performance of the company.

________ Provide Incentive for the Executive to Create Wealth for Shareholders