A goal of long-term ______ is to align the interests of employees with those of shareholders and to motivate aligned performance over periods of more than 1 year.
A) incentive pay
B) base pay
C) merit pay
D) competitive pay

Question

Quizplus · Accepted Answer

Incentive pay is designed to motivate employees to focus on achieving long-term goals and align their interests with those of shareholders. Unlike base pay or merit pay, incentive pay rewards employees for performance over extended periods of time, often measured in years. Competitive pay, while important for attracting and retaining talented employees, does not necessarily incentivize long-term alignment of interests.

A Goal of Long-Term ______ Is to Align the Interests