Which of the following plans is most geared toward long-term organizational performance?
A) Merit pay
B) Profit sharing
C) Stock options
D) Gainsharing

Question

Quizplus · Accepted Answer

Stock options provide employees with the opportunity to purchase company stock at a discounted price over a certain period of time. This ties the success of the employee's financial gain to the long-term performance of the company's stock price. As a result, stock options are most geared toward long-term organizational performance. Merit pay and gainsharing are more geared toward short-term productivity and profit sharing is more geared toward sharing the profits of the company as a whole, rather than individual long-term performance.

Which of the Following Plans Is Most Geared Toward Long-Term