Which of the following statements is TRUE?
A) Pay-for-performance systems do not work well for CEOs because most CEO performance is not objectively measurable.
B) Performance-based pay systems for CEOs typically build in penalties for unethical behavior.
C) Performance-based pay systems for CEOs are a key factor in an organization's development of a performance-driven culture.
D) Pay-for-performance systems do not work well for CEOs because organizational performance is strongly affected by economic factors beyond the CEO's control

Question

Quizplus · Accepted Answer

Performance-based pay systems for CEOs are indeed a key factor in promoting a performance-driven culture within organizations. They align the interests of the CEOs with the goals of the organization, incentivizing CEOs to perform in ways that enhance the organization's overall performance.

Which of the Following Statements Is TRUE