Which of the following is often the largest component in an executive pay package?
A)Base pay
B)Stock options
C)Merit pay
D)Perks

Question

Quizplus · Accepted Answer

Stock options are often the largest component in an executive pay package as they offer the potential for significant financial gain if the company's stock price rises. This incentivizes executives to work to increase the company's value and thereby increase shareholders' returns. Base pay, merit pay, and perks are also components of executive pay packages, but they are typically smaller in comparison to stock options.

Which of the Following Is Often the Largest Component in an Executive