_______ are executive bonus compensation plans that focus on accounting measures of performance and are designed to offset the limitations of market-based measures of performance.
A) Cash restricted plans
B) Golden handcuffs
C) Restricted stock plans
D) Cash-based

Question

Quizplus · Accepted Answer

Cash-based incentive plans are designed to focus on accounting measures of performance, such as earnings or return on investment, to provide executives with bonuses. These plans are used to complement market-based measures like stock price, addressing their limitations by ensuring executives are rewarded for the company's operational success, not just its market performance.

_______ Are Executive Bonus Compensation Plans That Focus on Accounting