Executive pay at Ashance Inc. ,a manufacturing company,includes bonuses based on the year's profits or other measures related to the organization's goals.Sometimes,to gain tax advantages,the bonus is made part of executives' retirement plans.Which of the following is being exemplified in this scenario?

Question

Quizplus · Accepted Answer

The scenario describes bonuses based on the year's profits or other measures related to the organization's goals, which are typically short-term incentives. The mention of including the bonus in executives' retirement plans for tax advantages does not necessarily indicate long-term incentives as it is not stated whether the bonus is deferred until retirement or paid out immediately. Balanced scorecards, piecework plans, and employee stock ownership plans are not mentioned as being part of the scenario.

Executive Pay at Ashance Inc