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What Is a Non-Deductible Formula as It Relates to Short-Term

Question 54

Multiple Choice

What is a non-deductible formula as it relates to short-term incentives for senior managers and executives?


A) Compensation paid over a threshold amount
B) A formula incorporating years of service and value to the company
C) The fund that begins to accumulate after a specified level of earnings
D) A straight percentage (usually of the company's net income used to create a short-term incentive fund
E) A long-term incentive that pays out on a straight-line basis with no deductible

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