Unscrupulous managers have learned ways to manipulate stock options and undermine their benefits to stockholders. Discuss some provisions that could be built into the process to curb such practices.
What will be an ideal response?
Such problems are best attacked directly by requiring the issue of stock options to management to satisfy provisions such as the following:a. That exercise of those stock options should not be permitted for some substantial period of time, say five years, after they are initially offered;b. That the stock options be performance based;c. That any such grant of options to management be subject to approval by vote of the firm’s stockholders; andd. That the sale of such shares by top management be made public promptly.
You might also like to view...
The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from the 10,000th soda is
A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.
Refer to the scenario above. The market for Good A in Eduland is an example of a ________
A) monopoly B) duopoly C) monopolistic competition D) perfect competition
How are goods and services produced in the global economy?
A. Developing countries use less human capital but just as much physical capital as advanced economies. B. Emerging economies use more capital-intensive technology than do developing economies. C. Human capital in all economies is similar. D. Advanced economies use less capital than developing economies.
By the end of the 20th century, the countries of origin of the new U.S. immigrants shifted away from its European majority. A smaller percentage of total immigrants arrived from Europe, and more and more came from Asia, Canada and Mexico
Indicate whether the statement is true or false