Match the items of List – I with the items of List – II and select the correct code : List – I List –…
Matching the executive and employee compensation terms with their definitions: (a) Golden parachutes (iii) are severance payments made to executives upon a change in…
Choose your answer
Match the items of List – I with the items of List – II and select the correct code :
List – I
List – II a. Golden parachutes i. The right to purchase a stated number of shares of a company stock at today’s price at some time in the future. b. Gain sharing ii. An incentive plan that engages employees in a common effort to achieve productivity objectives and share the gains. c. Stock-option iii. Payments companies make in connection with a change in ownership or control of a company d. Annual bonus iv. Plans designed to motivate short term performance of managers and are tried to company profitability.
Answer and explanation
Correct answer D
Matching the executive and employee compensation terms with their definitions: (a) Golden parachutes (iii) are severance payments made to executives upon a change in corporate ownership or control; (b) Gain sharing (ii) is a group incentive plan engaging employees to achieve productivity targets and share the financial gains; (c) Stock-option (i) grants the right to purchase a stated number of company shares at a predetermined exercise price in the future; and (d) Annual bonus (iv) is a short-term incentive plan tied to annual company profitability.
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UGC NET Commerce