Why Do Organizations Offer Deferred Compensation to Executives

question 17

Multiple Choice

Why do organizations offer deferred compensation to executives?

• A)to emphasize long-term performance of the organization
• B)to hide excessive one-time bonuses earned by executives.
• C)to help executives with tax liabilities caused by incentive plans
• D)to place "golden handcuffs" on key executives so they won't leave prematurely

---

Definitions:

Somnambulism

Also known as sleepwalking, a disorder occurring during deep sleep causing individuals to walk or perform other complex behaviors while asleep.

Sleep Terrors

Episodes of screaming, intense fear and flailing while still asleep, primarily in children, distinct from nightmares due to their occurrence in non-REM sleep.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or experiencing restful sleep.

Hypnotic Suggestibility

The degree to which a person can enter a hypnotic state, characterized by increased responsiveness to suggestions.