Which of the Following Is NOT Characteristic of a Compensation

question 83

Multiple Choice

Which of the following is NOT characteristic of a compensation and reward system designed to help drive successful strategy execution?

• A) Tying incentives to performance outcomes directly linked to good strategy execution and financial performance.
• B) Keeping the time between achieving the target performance outcome and the payment of the reward as short as possible.
• C) Making sure that the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect.
• D) Generous rewards for people who turn in outstanding performances.
• E) A reward system that involves high (say 50 percent of base salary)non-monetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels.

---

Definitions:

Common Stock

A type of security that represents ownership in a corporation and gives holders voting rights, as well as a share in the company's profits via dividends.

Per Year

A term indicating something occurs, is measured, or is evaluated on an annual basis.

8 Years

A period or duration of eight calendar years.

Annual Income

The total earnings from work, investment, benefits, and other sources over the course of a year.