Which of the following compensation packages is likely to work best for executive managers?
A)Piecemeal
B)Stock options
C)Quarterly bonuses
D)Commission

Question

Quizplus · Accepted Answer

Executive managers typically have significant influence over the direction and success of the company, and therefore their compensation packages often include stock options. This aligns their interests with those of the company's shareholders and provides an incentive for them to make decisions that will increase the value of the company over the long term. Commission and piecemeal compensation packages are more suitable for sales or production staff, and quarterly bonuses may not provide sufficient motivation for executive managers who are responsible for overall company performance.

Which of the Following Compensation Packages Is Likely to Work