The most likely effect of reducing performance-based rewards for the CEOs of corporations would be:
A) an increase in profits.
B) a drop in revenues.
C) a drop in profits.
D) an increase in the value of the corporation.

Question

Quizplus · Accepted Answer

Performance-based rewards incentivize CEOs to work harder and increase profits for the corporation. Without these rewards, CEOs may not work as hard or be as motivated, resulting in a decrease in profits for the corporation. Additionally, reducing performance-based rewards may result in top talent leaving the corporation for better opportunities with better incentives. As a result, reducing performance-based rewards is likely to lead to a drop in profits for the corporation.

The Most Likely Effect of Reducing Performance-Based Rewards for the CEOs