Stock option plans:
A) are illegal in Canada.
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) do both 'B' and 'D'.

Question

Quizplus · Accepted Answer

Stock option plans give employees the right to purchase company shares at a future date at a predetermined price. Option D is incorrect as several studies have shown that stock option plans can actually increase employee commitment to the organization by aligning their interests with those of the company. Option A and C are incorrect as they do not accurately describe stock option plans.

Stock Option Plans