The goal of an executive bonus compensation plan is to:
A) Motivate executives to achieve maximization of shareholder wealth
B) Motivate executives to achieve maximization of personal wealth
C) Differentiate executives from other managers
D) Ensure the success of the firm

Question

Quizplus · Accepted Answer

The goal of an executive bonus compensation plan is to motivate executives to achieve the maximization of shareholder wealth, which is aligned with the interest of the owners of the company. It helps ensure that executives are making decisions that benefit the company in the long run, rather than just focusing on their personal gains.

The Goal of an Executive Bonus Compensation Plan Is To