Which of the following is not a purpose of equity-based compensation?
A) Provide both risk and incentives to employees.
B) Motivate employees by aligning employee and employer incentives.
C) Avoid compensation limits for certain publicly traded company executives.
D) Provides a low or no cost form of compensation.

Question

Quizplus · Accepted Answer

Employers have to repurchase shares or dilute ownership (incurring opportunity costs) to provide equity-based compensation.

Which of the Following Is Not a Purpose of Equity-Based