Designers of executive compensation plans emphasise which of the following factors?
A)Administrative ease
B)Achievement of organisational goals
C)The probability that the executives affected by the plan will perceive the plan as fair
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Designers of executive compensation plans need to consider all of the above factors to ensure that the plan is effective in achieving the goals of the organisation, easy to administer, and perceived as fair by the executives affected by the plan. A plan that is not perceived as fair by executives may not motivate them to perform at their best, which defeats the purpose of having a compensation plan in the first place. Additionally, a plan that is too complicated or difficult to administer may lead to mistakes or errors in implementation, which can have undesirable consequences for both the organisation and its executives. Therefore, the best choice is D, as all of the factors mentioned are important to consider when designing an effective executive compensation plan.

Designers of Executive Compensation Plans Emphasise Which of the Following