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The CEO of a small, publicly traded company has decided to provide a stock-based compensation system for the executives of the company in order to
The CEO of a small, publicly traded company has decided to provide a stock-based compensation system for the executives of the company in order to improve performance. Which of the following issues is the CEO most likely trying to address? a. Investor enthusiasm has been flat, which has not stimulated stock prices. Providing stock-based compensation would inflate the earnings and revenues of the company's financial statements, thereby motivating higher stock prices. b. The equity of stockholders is far too diluted, so the CEO intends to offer stock compensation to executives to reverse that trend. c. The executives have been taking far too many high-risk actions, and the CEO wants them to focus on short-term projects. d. The CEO wants to move the executives' focus from short-term projects towards innovation and diversification
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