A company's compensation system for its managers should provide incentives for the managers to maximize the company's long-term profitability.

Question

Quizplus · Accepted Answer

Providing incentives for managers to maximize long-term profitability is a key goal of compensation systems, as it aligns individual incentives with the overall success and growth of the company. This helps to promote sustainable growth and enhances the company's value over time.

A Company's Compensation System for Its Managers Should Provide Incentives