Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Further share option scheme as reward system ( practice platform Dec 22 Q.3(b))
- This topic has 1 reply, 2 voices, and was last updated 1 year ago by Ken Garrett.
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- February 8, 2023 at 11:31 am #678523
Hi, Ken, as you have mentioned the shareholder suspects of directors’ malpractice of controlling the share option price at the lowest level and gain a future enormous profit after exercising their options, this reward scheme has been mis-employed as self-earning of profit rather than incentivise them to improve the underperformance of daily operation of call centre service quality. Here, the question asks for advice on benefits and problems of such scheme. Is it advantageous to me to place equal balance of each issue (i.e. 3 for benefits and 3 for drawbacks) to earn marks? Note: this sub-part question is 8 marks.
Finally, this kind of issue does not appear in the APM syllabus. How do I encounter it? I have studied FM at an very earlier period and I have almost forgotten them. Do I need to read more e-business magazines so as to regain the related knowledge? Can you recommend other issues of e-magazine that can help me?
February 14, 2023 at 3:26 pm #678883Sorry to be so late – I did post a reply some time ago but it’s gone AWOL.
1 No need to balance pros and cons. There is no reason why there should be a balance.
2 I think this particular question is rather left-field for APM .Do not read more e-business magazines: life’s too short. Concentrate on question practice.
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