Compensation means different things to different stakeholders.For shareholders,what is an important consideration?
A) take-home pay of employees
B) effectiveness of the compensation system in attracting employees
C) financial value of the compensation system to the firm's bottom line
D) fairness of the compensation system

Question

Quizplus · Accepted Answer

Shareholders are interested in the financial value of the compensation system to the company's bottom line, as it can impact the company's profitability and ultimately, their dividends or stock value. They want to make sure that the compensation system is cost-effective and helps the company achieve its financial goals. While take-home pay, attracting employees, and fairness are also important considerations, they are generally more relevant to other stakeholders, such as employees or customers.

Compensation Means Different Things to Different Stakeholders