Pay for performance measures in the best interests of shareholders would, logically, exclude long-term achievement and deferred compensation.

Question

Quizplus · Accepted Answer

Pay for performance measures that are truly in the best interests of shareholders should not solely focus on short-term gains, but also take into account long-term achievements and deferred compensation. This encourages executives to make decisions that benefit the company's long-term success, rather than just making choices that boost immediate profits.

Pay for Performance Measures in the Best Interests of Shareholders