Executive pay based on relative performance:
A) makes little sense, but has still been widely adopted.
B) makes little sense and has not been widely adopted.
C) makes a lot of sense and has been widely adopted.
D) makes a lot of sense, but has not been widely adopted.

Question

Quizplus · Accepted Answer

Executive pay based on relative performance makes a lot of sense as it incentivizes executives to focus on outperforming their peers, rather than just meeting a set goal. However, it has not been widely adopted and is often criticized for being too subjective and difficult to measure.

Executive Pay Based on Relative Performance