A factor that can reduce managers' short-term focus is the fact that incentive compensation plans are administered by a compensation committee that can intervene when circumstances warrant modification of the scheduled incentive award.

Question

Quizplus · Accepted Answer

The option states correctly that intervention by the compensation committee can reduce managers' short-term focus, as it allows for modifications to the scheduled incentive award.

A Factor That Can Reduce Managers' Short-Term Focus Is the Fact