Explain the problems associated with Questionable Executive Compensation Schemes
A survey by Thompson Financial revealed the strong belief that executives have abused stock-based compensation. The consensus is that fewer stock options should be offered than currently is the practice. Excessive use of short-term stock options to compensate directors and executives may result in short term thinking and strategies aimed at driving up stock prices at the expense of the firm's long-term health. In extreme cases, financial statement misrepresentation has been the vehicle to achieve the stock price needed to exercise the option.
You might also like to view...
Which of the following is a focus of managerial accounting?
A) to generate a company's financial statements for tax reporting B) to provide information to business managers to assist them in controlling their businesses C) to provide information to shareholders to assist them with their investment decisions D) to ensure that the reports produced for internal and external business purposes are GAAP compliant
Demand forecasts and market intelligence inputs are fed to sales and operations plans by the ______ department.
A. marketing B. human resources C. finance D. operations
A branch is an independently organized and incorporated company
Indicate whether the statement is true or false
A diagnosis of poor employee performance should focus on the three interactive elements of ability, motivation, and external conditions.
Answer the following statement true (T) or false (F)