Question
Vextronics is a closely held corporation and Bob Jones is their director of marketing. The current owners recognize that Bob is responsible for much of
Vextronics is a closely held corporation and Bob Jones is their director of marketing. The current owners recognize that Bob is responsible for much of Vextronics' rapid growth over the past several years and they would like to provide him with the opportunity to share in the future growth of the company and reward him for his efforts.
However, they do not want to dilute their ownership stakes. What is the most appropriate form of compensation that Vextronics could offer Bob?
A)
Nonqualified stock options
B)
Rabbi trust
C)
Stock appreciation rights
D)
Restricted stock
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