A Disadvantage of Options as Instruments of Performance-Related Rewards Is

Multiple Choice

A disadvantage of options as instruments of performance-related rewards is:

A) that it exposes the executives to market volatility.
B) that it increases opportunistic behavior on the part of the employees who expect to earn these incentives.
C) that the actual monetary gains from such incentives are usually lower than other performance-related incentives provided by organizations.
D) that once an option has been exercised and the executive has sold her shares it will have no continuing effect on her incentives to make better future decisions.