Which of the following statements about managers' compensation is true? a. High salaries motivate managers to increase stockholders' wealth. b. Awarding managers stock options on a monthly basis instead of yearly keeps stock prices high. c. Basing managers' compensation on intrinsic value, not market price, will lead to constant increases in stock price. d. Yearly changes in compensation policies keep managers alert to differences in stock prices. e. Rewarding managers for stock performance over the long run gives them an incentive to keep the stock price high over time.

Which of the following statements about managers' compensation is true? a. High salaries motivate managers to increase stockholders' wealth. b. Awarding managers stock options on a monthly basis instead of yearly keeps stock prices high. c. Basing managers' compensation on intrinsic value, not market price, will lead to constant increases in stock price. d. Yearly changes in compensation policies keep managers alert to differences in stock prices. e. Rewarding managers for stock performance over the long run gives them an incentive to keep the stock price high over time.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter1: Introduction To Cost Management

Section: Chapter Questions

Problem 4E: Consider the following thoughts of a manager at the end of the companys third quarter: If I can...

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