The recently appointed CEO of XYZ Inc.uses a luxury summerhouse owned by the company for rest and relaxation with his family as well as a place to invite important clients before a lucrative business deal.XYZ Inc.also provides a membership to an exclusive country club to its CEO.These kinds of benefits offered to CEOs are called
A)discretionary bonuses.
B)perquisites.
C)golden parachutes.
D)clawback provisions.

Question

Quizplus · Accepted Answer

The benefits offered to the CEO, such as the use of a luxury summerhouse and membership to an exclusive country club, are known as perquisites, or "perks" for short. These are additional benefits beyond salary and bonuses that are provided to top executives as a way to attract and retain talented leaders. Discretionary bonuses are cash bonuses that are awarded at the discretion of management, while golden parachutes and clawback provisions are specific types of executive compensation arrangements that provide financial protections or penalties in certain situations.

The Recently Appointed CEO of XYZ Inc