Which of the following forms of manager compensation most likely encourages managers to take a long-term view of how their performance ties in with the long-term goals of a company?
A) Year-end cash bonus
B) Base salary
C) Share options
D) Use of a company car

Question

Quizplus · Accepted Answer

Share options provide managers with the opportunity to earn a portion of the company's ownership, which incentivizes them to think about the long-term performance and growth of the company, as their own financial gain is tied to the company's success over time. Cash bonuses and the use of a company car do not have a direct impact on the manager's stake in the company, while base salary is a fixed amount that may not reflect the manager's performance or the company's long-term goals.

Which of the Following Forms of Manager Compensation Most Likely