Annual bonuses often play a major role in executive compensation and are primarily designed to _____.

Question

Quizplus · Accepted Answer

Annual bonuses are typically used to incentivize executives to achieve better short-term performance goals. This can include meeting financial targets, achieving sales goals, or other benchmarks that can be met within a single year. The bonus is usually tied to specific performance metrics, creating a clear incentive for executives to work harder and achieve better results.

Annual Bonuses Often Play a Major Role in Executive Compensation