For purposes of strategic alignment, incentive compensation should be based upon
A) expected performance of weighted targets for a given period.
B) expected financial performance of the company.
C) actual performance compared to weighted target values for a given period.
D) actual financial performance of the company.

Question

Quizplus · Accepted Answer

Incentive compensation should be based upon actual performance compared to weighted target values for a given period. This creates alignment between the goals of the company and the individual employee. It also motivates employees to focus on achieving targets rather than just overall financial performance of the company.

For Purposes of Strategic Alignment, Incentive Compensation Should Be Based