The most widely used long-term performance incentives for executives is/are
A) generous perquisites.
B) 401ks.
C) stock options.
D) annual cash incentives.

Question

Quizplus · Accepted Answer

Stock options are the most widely used long-term performance incentives for executives. They allow executives to purchase company stock at a discounted price, providing them with a financial incentive to improve the company's performance and increase its stock price. This aligns the interests of executives with those of the shareholders, and can help to incentivize long-term value creation. While perquisites, 401ks, and annual cash incentives can all be used as part of an executive compensation package, they are generally not considered as effective at driving long-term performance as stock options.

The Most Widely Used Long-Term Performance Incentives for Executives Is/are