Executive compensation is more likely to be effective if it is appropriately linked to

Question

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Executive compensation is most effective when it is tied to the overall corporate strategy of the organization. This ensures that the executive's goals and objectives align with the goals of the company, thus motivating them to work towards achieving them. Linking executive compensation to external issues or internal issues or even a cost-reduction strategy may not necessarily lead to organizational success, as these are not always aligned with the overall corporate strategy. Job evaluation is also not relevant in this context as it focuses on determining the value of a position in the company's hierarchy, rather than on aligning executive compensation with the corporate strategy.

Executive Compensation Is More Likely to Be Effective If It