Which of the Following Statements Concerning Stock-Based Compensation Schemes for Executives

Multiple Choice

Which of the following statements concerning stock-based compensation schemes for executives is NOT true?

A) Under accounting regulations that were enforced until 2005, stock options, like wages and salaries, were expensed.
B) Huge stock-option grants can align the interests of management and stockholders.
C) Stock-based compensation schemes can dilute the equity of stockholders.
D) Huge stock-option grants increase the outstanding number of shares in a company.
E) Top managers can earn huge bonuses from stock options that were granted several years prior.