When are discretionary bonus plans attractive tax-planning vehicles? What incentives might induce the employer to renege on the bonus? What prevents the employer from reneging? If an employee...

When are discretionary bonus plans attractive tax-planning vehicles? What incentives might induce the employer to renege on the bonus? What prevents the employer from reneging?

If an employee exercises an NQO early in advance of an expected tax-rate increase, what costs or benefits might accrue to the employer?

In deriving Equation 8.12 comparing ISOs and NQOs, how were any stock price changes after exercise of an ISO treated?