There is a perception that annual bonuses are the best forms of governance.

Question

Quizplus · Accepted Answer

There is no one-size-fits-all answer to what the best form of governance is. Annual bonuses can motivate employees to achieve certain goals, but they can also lead to short-term thinking and behavior. There are various forms of governance, such as performance-based pay, profit-sharing, and employee stock ownership, that can be effective in incentivizing and aligning employee and company goals. Ultimately, the best governance model will depend on the specific company, its goals, and its culture.

There Is a Perception That Annual Bonuses Are the Best