TWO ANALYSTS ARE DISCUSSING SHARE-BASED COMPENSATION AND MAKE THE F...

8. - CFA 2018 LEVEL 2 FRA QUESTION BANK EMPLOYEE COMPENSATION QBANK 8. - CFA 2018 LEVEL 2 FRA QUESTION BANK EMPLOYEE COMPENSATION QBANK
CFA 2018 LEVEL 2 FRA QUESTION BANK EMPLOYEE COMPENSATION QBANK
8. Two analysts are discussing share-based compensation and make the following comments regarding stock appreciation rights and phantom stock: Analyst 1: With a phantom share plan, compensation is based on the performance of the firm’s actual shares. Analyst 2: Stock appreciation rights do not have a dilution effect on existing shareholders. A. Only Analyst 1 is correct. B. Only Analyst 2 is correct. C. Both analysts are correct. Solutions