Stock-Based Compensation Flashcards
1
Q
Adv. and Disadv of Stock Options
A
The unlimited upside to employee
No cash outflow to the company
Neg.
Stock options could expire
May dilute the EPS
2
Q
Adv. and Disadv of Stock Appreciations Rights
A
The unlimited upside to employees
No share dilution to the company
FMV of the shares may not rise sufficiently to create a benefit
REquires with cash or stock payment
