The parent of MNC can implement compensation plans that directly reward the subsidiary managers for enhancing the value of the MNC.

Question

Quizplus · Accepted Answer

This is a common practice in many MNCs, as it aligns the interests of the subsidiary managers with those of the parent company and encourages them to work towards increasing the overall value of the MNC. This can be done through various means, such as stock options, performance-based bonuses, or profit-sharing arrangements, among others.

The Parent of MNC Can Implement Compensation Plans That Directly