When hired by Delmar Designs, Shane agreed to forego 6% of his normal pay if he didn't meet his goals in return for a 12% bonus if he exceeded his goals. In which type of plan does Shane most likely participate?
A)earnings-at-risk pay plan
B)variable risk sharing plan
C)at-risk gainsharing plan
D)employee at-risk plan

Question

Quizplus · Accepted Answer

A)At-risk variable pay plans are plans that put some portion of the employee's weekly, monthly, or yearly pay at risk. If employees meet or exceed their goals, they earn back not only the portion of their pay that was at risk, but also an incentive. If they fail to meet their goals, they forego some of the pay they would normally earn.

When Hired by Delmar Designs, Shane Agreed to Forego 6