The two most common types of incentive compensation programs that reward executives and align the interests of top-management teams with those of shareholders are stock options and ________.
A) commissions
B) employee discounts
C) annual bonus plans
D) paid vacations

Question

Quizplus · Accepted Answer

The two most common types of incentive compensation programs that reward executives and align the interests of top-management teams with those of shareholders are stock options and annual bonus plans. While commissions, employee discounts, and paid vacations may also be used as forms of compensation, they are not typically used to align the interests of executives with shareholders. Therefore, the best choice is C - annual bonus plans.

The Two Most Common Types of Incentive Compensation Programs That