With executive remuneration packages,long-term performance is rewarded by:
A) an annual bonus based on achievement of profit targets.
B) fixed salary and superannuation.
C) incentives such as share option plans.
D) a company car.

Question

Quizplus · Accepted Answer

Incentives such as share option plans are the best choice to reward long-term performance as they align the interests of executives with those of shareholders, promoting sustainable growth and increasing shareholder value over the long term. Annual bonuses based on profit targets may encourage short-term decision-making at the expense of long-term value creation. Fixed salary and superannuation may not provide sufficient motivation to drive superior performance. A company car is not a relevant factor in rewarding long-term performance.

With Executive Remuneration Packages,long-Term Performance Is Rewarded By