For purposes of strategic alignment,what should incentive compensation be based upon?

Question

Quizplus · Accepted Answer

Incentive compensation should be based on actual performance compared to weighted target values for a given period to ensure strategic alignment between individual goals and the overall company strategy. This approach incentivizes employees to focus on achieving specific targets that contribute to the company's overall objectives. Simply basing incentive compensation on expected performance or actual financial performance does not necessarily align with the company's strategic priorities.

For Purposes of Strategic Alignment,what Should Incentive Compensation Be Based