Employees who are rewarded on the basis of corporate-wide pay-for-performance plans:
A) show a clear increase in productivity, morale, and loyalty.
B) are put at risk due to factors affecting corporate stock prices.
C) are financially secure if they are in a profit-sharing plan.
D) typically pay very high taxes for their incentives.

Question

Quizplus · Accepted Answer

Employees who are rewarded on the basis of corporate-wide pay-for-performance plans are often tied to company stock prices, which can be unpredictable and cyclical. Therefore, they are put at risk if the company's stock price falls. This situation can affect employee morale, loyalty, and job security.

Employees Who Are Rewarded on the Basis of Corporate-Wide Pay-For-Performance