Which of the following statements best explains this finding

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Question: Research on managerial compensation has found that compensation of senior managers of growth firms is more related to share prices of the company than the net income of the company . Which of the following statements best explains this finding ? Share price has greater precision than net income . Managerial compensation based on share prices imposes less risk on the manager than does net income - based compensation . Net income - based compensation imposes more risk on the manager than does share price - based compensation . The net income of growth firms suffers from a large recognition lag .

Reference no: EM133425656

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Which of the following statements best explains this finding : Research on managerial compensation has found that compensation of senior managers of growth firms is more related to share prices of the company

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