Question

Why do you think companies compensate employees through various types of stock (warrants, options, etc.)? Why...

Why do you think companies compensate employees through various types of stock (warrants, options, etc.)? Why not just give the employees cash?

Homework Answers

Answer #1

Companies compensating varies stocks and warrants to their employees to encourage skills , loyalty ,to retain and attract etc..,

Companies providing shares below the market price to employees.

Stock option will create a sense of belonging and ownership amongst of employees.

Companies provide shares to employees other than cash. It will help to company to stick their employees with company employees are work for more profit to company.

Employees get share below the market price

And company will not loss efficient employees.

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