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Golden Handcuffs

Question 69

Multiple Choice

Golden handcuffs:


A) Have no downside risk to executives, who always profits unlike other shareholders
B) Have a weak correlation between earnings measures and shareholder wealth creation
C) Make it hard to explain the dimensions of managerial performance using the movement in share price
D) May promote risk-averse decision making due to the downside risk borne by the executive

Correct Answer:

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