Why would a company pay an executive in options as opposed to salary?
What will be an ideal response?
There are several benefits to paying executives in options including alignment of executive and shareholder interests, reduced fixed cost of salary, placing part of the executive's salary at risk, and delaying compensation. Finally, options are a tax-efficient means of payment as they are generally taxed when exercised which provides flexibility in the timing of taxable income.
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The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the
a. warehouse b. shipping department c. billing department d. inventory control department
Julie Webb, CPA takes out an automobile loan with First national Bank of Wellville (FNBW) while attending the University of Wellville. Julie graduates one year later and is hired as an auditor by Best and Driftwood, LLP. Her first assigned audit engagement is with First national Bank of Wellville, a client of Best and Driftwood. As a new audit assistant, Julie continues to pay her automobile loan
payments each month. According to the AICPA, why is Julie is considered a covered member for FNBW independence purposes? a. She will be working on the engagement. b. She has a direct financial interest in FNBW. c. She graduated in the same area as the client is operating. d. She has an immaterial direct financial interest in FNBW.
The accounting rate of return is calculated by dividing the project's investment by its net income
Indicate whether the statement is true or false
Deming directed managers’ attention to the fact that most quality problems are not the fault of employees, rather, the ______ is to blame.
a. customer b. strategy c. system d. manager