Which of the following are negative consequences of compensating managers with stock? Question 14 options: a) Stock compensation can attenuate management shirking and risk aversion b) Stock compensation forces management to bear high levels of firm-specific risk, which cannot be diversified away c) Stock compensation allows a risk-averse manager to be assured of a minimum level of pay d) Stock compensation is less susceptible to market wide effects outside of management control
Which of the following are negative consequences of compensating managers with stock? Question 14 options: a) Stock compensation can attenuate management shirking and risk aversion b) Stock compensation forces management to bear high levels of firm-specific risk, which cannot be diversified away c) Stock compensation allows a risk-averse manager to be assured of a minimum level of pay d) Stock compensation is less susceptible to market wide effects outside of management control
Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter1: Ethics Expectations
Section: Chapter Questions
Problem 10.9EC
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Question
Which of the following are negative consequences of compensating managers with stock?
Question 14 options:
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