The aim of executive compensations is to:
A) Enrich the executive
B) Align the goals of the executive with the workers
C) Align the goals of the executive with the shareholders
D) Enrich the company

Question

Quizplus · Accepted Answer

The aim of executive compensations is to align the goals of the executive with the shareholders, as this is believed to increase the executive's motivation to increase the company's profitability and shareholder value. While executive compensation may also benefit the executive, enriching the company is not necessarily its main objective. Aligning the goals of the executive with workers is important, but this is not the primary aim of executive compensation.

The Aim of Executive Compensations Is To