Which of the following is the most complicated incentive plan?
A) Merit pay
B) Profit sharing
C) Stock options
D) Pay for performance

Question

Quizplus · Accepted Answer

Stock options are the most complicated incentive plan because they involve granting employees the option to purchase company stock at a predetermined price, which can be influenced by various factors such as market fluctuations and performance of the company. There are different types of stock options that can impact the complexity of the plan, such as non-qualified stock options and incentive stock options. Additionally, the tax implications and accounting treatment of stock options can add to the complexity of the plan.

Which of the Following Is the Most Complicated Incentive Plan