Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Stockholder and manager conflicts Executive compensation packages often the performance to bonus and Incentive awards, supplemental retirement packages, perquisites, and severance pay, in order

image text in transcribed
3. Stockholder and manager conflicts Executive compensation packages often the performance to bonus and Incentive awards, supplemental retirement packages, perquisites, and severance pay, in order to encourage the management team to align their performance with organizational goals. Which of the following compensation proposals is most likely to be in the best interest of the company's shareholders? O A base salary of $500,000 plus perquisites worth $250,000 A base salary of $500,000 plus a stock option package for 250,000 shares that mature in six months A base salary of $500,000 plus a stock option package for 250,000 shares, with 20% of shares maturing at the end of each of the next five years Vision Tech is a software company based out of San Francisco. Its stockholders are mostly institutional Investors and there is relatively little individual ownership. If these institutions dilute their positions and sell off their stake in Vision Tech's stock to several individual investors, would direct shareholder intervention be more or less likely to motivate the firm's management? More likely Less likely Vision Tech's stock price is currently trading at $31 per share. The consensus among analysts is that the intrinsic value of Vision Tech's stock is $26 per share. Is Vision Tech more or less likely to receive a hostile takeover bid? Less likely More likely

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essential Nonprofit Fundraising Handbook

Authors: Michael A. Sand, Linda Lysakowski

1st Edition

1601630727, 978-1601630728

More Books

Students also viewed these Finance questions