Question

The provision where an executive’s stock options all become vested at a single date is known as ______. To account for the fact that the stock prices of nearly all firms, even under-performing firms, rise during strong bull markets, some firms have incorporated ______ where the exercise price varies based on the overall stock market.

Select one:

a. staggered vesting; put options

b. option-timed vesting; market-timing options

c. restricted vesting restricted voting rights

d. classified vesting; targeted share repurchases

e. cliff vesting; index options

Answer 1

The answer to the given question is provided below

Option b Option-timed vesting, market timing options