George works for a small start-up that develops educational apps.His company offers a bonus of up to 20% of his salary which is contingent on his performance as well as the company's performance.This type of compensation plan is also known as
A) fixed pay.
B) gainsharing.
C) perquisite.
D) incentive pay.
E) benefit pay.

Question

Quizplus · Accepted Answer

The compensation plan described in the question is incentive pay, which is a form of pay that is designed to provide motivation and incentivize performance. The bonus of up to 20% of salary is contingent on both the employee's individual performance and the performance of the company as a whole. This type of plan is intended to reward good performance and provide an additional incentive for employees to work hard and contribute to the success of the organization.

George Works for a Small Start-Up That Develops Educational Apps