The board of directors of an organization determines that it is necessary to create incentives for senior management to advance the organization's aims. The board of directors determines whether to award bonuses based on growth in share value at the end of each fiscal year. Bonuses are to be paid in shares that managers may hold or sell on the open market. What are the consequences of implementing such a bonus system?

The board of directors of an organization determines that it is necessary to create incentives for senior management to advance the organization's aims. The board of directors determines whether to award bonuses based on growth in share value at the end of each fiscal year. Bonuses are to be paid in shares that managers may hold or sell on the open market. What are the consequences of implementing such a bonus system?

Information Technology Project Management

9th Edition

ISBN:9781337101356

Author:Kathy Schwalbe

Publisher:Kathy Schwalbe

Chapter12: Project Procurement Management

Section: Chapter Questions

Problem 4QQ

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The board of directors of an organization determines that it is necessary to create incentives for senior management to advance the organization's aims. The board of directors determines whether to award bonuses based on growth in share value at the conclusion of each fiscal year. Bonuses are to be given in shares that managers may hold or sell on the open market. What are the consequences of implementing such a bonus system?
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