Based on a comprehensive survey of U.S.companies,the most common financial performance measure used in annual and long-term incentive plans for senior executives is

A) return on equity.
B) economic value added.
C) return on capital.
D) net income or revenues.

Financial Performance

The measure of a firm's profitability, liquidity, and solvency, reflecting its overall health and efficiency at generating profits.

Incentive Plans

Programs designed to motivate and compensate employees beyond their regular pay, based on performance or achievement of specific targets.

Senior Executives

High-level managers and officers within a company who are responsible for making crucial decisions and implementing strategies that shape the company's direction and success.