The board of directors of a corporation has decided that it is time to provide bonuses to the company's senior executives. Each year, the board of directors decides on incentive payments depending on the performance of the stock market. Managers will get bonuses in the form of stock that they may either retain or sell. The implications of such a bonus plan are unclear.

Principles of Information Systems (MindTap Course List)
12th Edition
ISBN:9781285867168
Author:Ralph Stair, George Reynolds
Publisher:Ralph Stair, George Reynolds
Chapter2: Information Systems In Organizations
Section: Chapter Questions
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The board of directors of a corporation has decided that it is time to provide bonuses to the company's senior executives. Each year, the board of directors decides on incentive payments depending on the performance of the stock market. Managers will get bonuses in the form of stock that they may either retain or sell. The implications of such a bonus plan are unclear.

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