Besides merit pay, two other types of performance-based pay are:
A) retained earnings and reinvested pay
B) incentive pay and 401K plans
C) earnings at risk and protected earnings
D) earnings at risk and incentive pay
E) incentive pay and retained earnings

Question

Quizplus · Accepted Answer

The two other types of performance-based pay, besides merit pay, are earnings at risk and incentive pay. Earnings at risk is pay that is tied to an employee's performance and is subject to being reduced or being eliminated if the employee does not meet the required performance criteria. Incentive pay is pay that is tied to achieving certain performance goals, such as increasing sales or reducing costs. Both of these types of pay are designed to motivate employees to perform at their best and reward them for their successes.

Besides Merit Pay, Two Other Types of Performance-Based Pay Are