Generally, firms should attempt to base mangers' compensation on
A)the number of years of managerial experience.
B)the number of hours they work.
C)verifiable results.
D)perks consumed.

Question

Quizplus · Accepted Answer

Basing managers' compensation on verifiable results aligns their interests with those of the firm and encourages performance. The number of years of managerial experience or the number of hours worked may not necessarily reflect a manager's effectiveness or contribution to the firm. Perks consumed are not a suitable basis for compensation.

Generally, Firms Should Attempt to Base Mangers' Compensation on