Which of the following is an example of massive kinked bonus?
A) A sponsor rewarding an athlete only in the case of victory at an event
B) An organization that gives a one piece-rate wage for all units produced irrespective of employee productivity
C) A sponsor rewarding an athlete for participation in an event
D) An organization rewarding an employee for referring someone who is later hired

Question

Quizplus · Accepted Answer

A massive kinked bonus is a type of incentive plan where there is a large jump in compensation once a certain target is reached. In this case, the athlete is only rewarded if they win the event, which is a significant jump in compensation compared to not winning. Options B, C, and D do not fit the definition of a massive kinked bonus.

Which of the Following Is an Example of Massive Kinked