Involving accountants in executive compensation plans is often especially helpful
A)in keeping track of the executive compensation plan.
B)in identifying the appropriate metrics to use when linking compensation to performance.
C)in reducing the total amount of compensation paid to executives.
D)in suggesting the appropriate amount of compensation executives should be paid.

Question

Quizplus · Accepted Answer

Accountants can offer valuable insights and expertise in identifying relevant performance metrics that align with the goals of the organization and ensure the compensation plan is fair and justifiable. They can also provide guidance on regulatory compliance and financial implications of the compensation plan. While they may provide recommendations on the appropriate amount of compensation, ultimately it is up to management and the board of directors to decide on executive pay levels.

Involving Accountants in Executive Compensation Plans Is Often Especially Helpful