The board of directors may grant stock options to managers in order to
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in order to motivate thier employees and to work more hard
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Align the interest of managers with that of shareholders is the answer.
Explanation:
The board of directors may grant stock options to managers in order to (align the interest of managers with that of the shareholders).
A board of directors may grant stock options as part of a compensation package to align incentives between shareholders and management and for getting managers to act in ways that ensure the long-term success of the company and the well-being of employees and stockholders rather than for personal success.
Question: The board of directors (BODs) may grant stock options to managers in order to
A. save executive compensation costs.
B. use as a substitute for bonus.
C. align the interest of managers with that of the shareholders.
D. none of the above
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