Which of the following is true regarding long-term variable pay?
A) Stock options have been shown to strongly affect employee performance.
B) The use of stock options has been accelerating over time.
C) After options have been exercised, they don't seem to impact motivation anymore.
D) None of the above

Question

Quizplus · Accepted Answer

Long-term variable pay, such as stock options, has a complex relationship with employee performance and motivation. While stock options can incentivize employees, their effectiveness and impact on motivation can vary widely among individuals and situations. The statement that stock options have been shown to strongly affect employee performance is too broad and does not account for this variability. The claim that the use of stock options has been accelerating over time is not universally true, as trends in compensation strategies can shift based on economic conditions, regulatory changes, and evolving best practices. Finally, the impact of exercised options on motivation is more nuanced than simply having no effect; it can depend on factors such as the perceived value of future awards and the overall compensation package. Therefore, none of the provided statements accurately capture the complexities of long-term variable pay's effects.

Which of the Following Is True Regarding Long-Term Variable Pay