Asked by Benjamin Leonard on Jul 23, 2024
Verified
Which of the following is a long-term incentive?
A) sales commission
B) group bonus
C) merit pay
D) stock option
E) piece rate
Long-Term Incentive
A reward system designed to improve employees' long-term performance, often through bonuses, stock options, or other financial rewards that vest over a period.
Stock Option
A benefit in which the employee is given the option to buy the company's stock at a discounted price.
Sales Commission
A form of remuneration given to sales employees, usually calculated as a percentage of the sales they have made, as an incentive to increase sales performance.
- Understand the purpose of executive remuneration and its parts in coordinating the interests of executives with organizational targets.
Verified Answer
AA
Alicia AmparoJul 30, 2024
Final Answer :
D
Explanation :
Stock option is a form of long-term incentive where employees are given the option to purchase company stock at a discounted price. It encourages employees to work towards the success of the company in the long-term, as the value of the stock will increase if the company performs well.
Learning Objectives
- Understand the purpose of executive remuneration and its parts in coordinating the interests of executives with organizational targets.