Description
- Describe ethical and legal features associated with equity-based recognition plans and recommend how leaders can prevent such potential abuse.
- From the e-Activity, select one type of employee benefit and report about how this specific benefit category is represented within the employment categories. For instance, you may choose retirement benefits and note the various industries which might be more inclined to provide that type of
Explanation & Answer
Attached.
Running head: EQUITY-BASED RECOGNITION PLANS
Equity-Based Recognition Plans
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Institution:
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EQUITY-BASED RECOGNITION PLANS
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Equity-based recognition plans
Ethical and legal features associated with equity-based recognition plans
Equity-based recognition plans involve the appraisal and compensation of employees
through the company’s equity. According to US Securities and Exchange Commission (2009),
this practice has become common so as to create benefits for both the company and the
employees if all the necessary protocols are followed. There are various policies and ethics
that surround these plans. Notably, they began gaining popularity after the introduction of the
securities act and most recently with the implementation of the Public Company Accounting
Reform and Investor Protection Act in 2002. The policies seek to protect the inves...
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