Which of the following statements is true about compensations and incentives?

Question

Quizplus · Accepted Answer

Bonuses are typically tied to specific performance objectives that employees are expected to meet. This helps to align individual performance with organizational goals, and provides an incentive for employees to work towards achieving those goals. While bonuses are sometimes discretionary in nature, they are generally paid out based on pre-established criteria. Salary may or may not include stock-based compensation, depending on the organization and the employee's role. Nondiscretionary compensations are typically given for specific reasons, such as meeting certain performance standards, and are not given solely at the employer's discretion.

Which of the Following Statements Is True About Compensations and Incentives