It is in the best interests of a company to base executive compensation on multiple performance measures.

Question

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Basing executive compensation on multiple performance measures helps to align the interests of executives with the long-term success of the company, rather than just short-term gains. It also offers a more comprehensive evaluation of executives' performance and encourages a focus on a variety of key areas such as financial, operational, and strategic outcomes. This can ultimately improve the company's overall performance and sustainability.

It Is in the Best Interests of a Company to Base