Management Performance

Bonus Payments Team 1

100

What is meant by relative performance evaluation?

Using performance of firms in same industry with similar shocks in order to obtain information about the uncontrollable shocks faced by the manager

200

The process of choosing the grant date of stock options retroactively so that the date of the grant would coincide with a date when the stock price was lowest is called...?

Backdating

300

Why do restricted stocks become more appealing in a down market?

Because, unlike an option restricted stock has value unless the stock goes down to zero.

400

What is the name for the strategy of setting the option grant data just after the announcement of bad news?

Bullet Dodging

Bonus Payments Team 2

100

Bonuses are based on …data whereas stock options are based on ...data?!

accounting data & market data

200

How is an agreement called between a company and an employee (usually upper executive) specifying that the employee will receive certain significant benefits if employment is terminated?

Golden Parachute

300

What is meant by the term “Christmas Tree” with regard to shareholder concern about compensation plans?

Many compensation plans contain elements that are in themselves admirable, but in combination with a host of other plans add up to a package that has no sensitivity to performance.

400

Setting an option grant data just before the announcement of "good-news" for the stock price is called?

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