Under which incentive scheme all the employees offered shares of the company at price which is lower than Market Price?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1 - Co-Partnership.
Co-Partnership is the incentive scheme where all the employees offered shares of the company at price which is lower than Market Price.
Co-partnership/ Stock option: Under these incentive schemes, employees are offered company shares at a set price which is lower than market price. Sometimes, management may allot shares in line of various incentives payable in cash. The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation. In Infosys, the scheme of stock option has been implemented as a part of managerial compensation.