Global Solutions Corp.pays its executives short-term incentives for meeting financial targets.Which of the following could be included in this incentive pay?
A) bonus for meeting the return on investment goal for last year
B) bonus for meeting a target for greater customer satisfaction
C) stock options
D) stock purchase plans
E) merit pay

Question

Quizplus · Accepted Answer

Short-term incentives are typically tied to financial targets, such as return on investment, which is included in option A. Customer satisfaction (option B) is not a financial target and would not typically be included in short-term incentives. Stock options and stock purchase plans (options C and D) are long-term incentives and not typically included in short-term incentives. Merit pay (option E) is a separate compensation strategy and not typically part of short-term incentives for meeting specific financial targets.