Which of the Following Is Not Characteristic of a Compensation

question 56

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 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 50 percent nonmonetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels

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Definitions:

S-Shaped

Describes a curve or function that depicts an initial slow growth, followed by rapid acceleration, and then a plateau or leveling off, commonly found in logistic growth models.

Convex

A shape or function that curves outward or has a bulge, often used in economics and mathematics to describe certain types of optimization problems or preferences.

Confidence Index

A measure, often used in financial contexts, reflecting the confidence or optimism that investors have in the financial markets or in the economy as a whole.

Bond Yields

The return an investor realizes on a bond, calculated as the coupon payments received from the bond relative to its price or face value.