Effective incentive compensation plans must induce individual behavior compatible with increasing the firm's wealth.Why are special awards given?

Question

Quizplus · Accepted Answer

Special awards are typically given for particular actions or extraordinary performance, and can serve as a way to incentivize and reward exceptional efforts that may fall outside the scope of the standard compensation plan. While they may have short-term effects on performance, they can also serve as a long-term incentive by creating a culture where exceptional performance is valued and recognized.

Effective Incentive Compensation Plans Must Induce Individual Behavior Compatible with Increasing