The board of directors of a company determines that senior management should be rewarded in order to achieve the company's objectives. The board of directors determines whether to award bonuses based...

The board of directors of a company determines that senior management should be rewarded in order to achieve the company's objectives. The board of directors determines whether to award bonuses based on growth in share value at the conclusion of each fiscal year. Bonuses will be given in stock, which the managers may keep or sell on the open market. What are the ramifications of instituting a rewards scheme like this?