The board of a firm believes that senior management should be rewarded for achieving the company's objectives. At the conclusion of each year, the board decides on incentives based on share price increases. Shares that managers may retain or sell will be used as payment for bonuses. What effects would such a bonus program have?

MIS
9th Edition
ISBN:9781337681919
Author:BIDGOLI
Publisher:BIDGOLI
Chapter1: Information Systems: An Overview
Section: Chapter Questions
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The board of a firm believes that senior management should be rewarded for achieving the company's objectives. At the conclusion of each year, the board decides on incentives based on share price increases. Shares that managers may retain or sell will be used as payment for bonuses. What effects would such a bonus program have?

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