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Share-based compensation plans are meant to provide staff with a) long-term performance...

Question:

Share-based compensation plans are meant to provide staff with

a) long-term performance incentives.

b) short-term performance incentives.

c) immediate cash compensation.

d) none of these.

Share-Based Compensation Plans:

Share-based compensation plans are issued to the employees by a company to increase the involvement of employees in the company. The company issues share option plans with stock appreciation rights, fixed compensatory share option plans, and performance-based compensatory share option plans.

Answer and Explanation: 1

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The correct answer is option (a).

Share-based compensation plans are meant to provide staff with long-term performance incentives.

Explanation: The...

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Understanding Employee Compensation

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Chapter 13 / Lesson 14
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Compensation is typically disbursed to employees in exchange for services rendered throughout the course of employment. Learn about direct employee compensation, indirect employee compensation, and the differences between monetary and non-monetary forms of compensation.


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