1. Explain why executive stock option plans became very popular in the 1990's? Do you believe the white-collar crime scandals of 2001-2002 will dampen the enthusiasm for stock option plans?
2. How can a person's acquisition of knowledge be determined so that his or her pay can be changed? Explain.
3. Explain the meaning and intent of a feedback pay system.
4. Explain the concept of a variable pay system.
5. How do you want your compensation package determined? Explain.
Here are your answers:
1. Stock option plans became so popular because it was a way of rewarding employees, yet at the same time, the expense did not hit the company's books. I think in the short term, the scandals would dampen enthusiasm, but in the long term people will forget about them and will once again be very enthusiastic about them.
2. A person's acquisition of knowledge can be determined ...