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Explain Incentive Compensation Plans and What They Should Accomplish

question 46

Essay

Explain incentive compensation plans and what they should accomplish.


Definitions:

Discretionary Bonuses

Additional pay that is awarded at the employer's discretion and is not guaranteed, often based on company or individual performance.

Executive Profit Sharing

A compensation mechanism where executives receive a portion of a company's profits in addition to their regular salary.

Decertification Request

A formal application to remove the certification or recognition of a labor union as the bargaining representative of a group of employees.

Collective Bargaining

The process of negotiating employment terms between an employer and a group of employees, often represented by a union, to reach a labor agreement.

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