CompensationMGMT Quiz 14

________ curve expresses the relationship between years since last degree, performance, and salary.

A maturity

Which of the following is the most popular executive perk offered by most companies?

Executive physicals

Which of the following is the least popular executive perk offered by most companies?

Housing allowance

________ argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees.

The social comparison theory

The most common approach to motivating executives to make decisions that are in the best interests of stockholders is

a long-term incentive plan using stock options.

In recent years, some firms have tried to deal with the plateau effect and also accommodate the different career motivations of mature scientists and engineers through a(n)

dual-career ladder.

A recent article analyzing the results from over 100 executive pay studies shows that the best predictor of executive pay is by far

firm size.

Annual bonuses often play a major role in executive compensation and are primarily designed to

motivate better short-term performance.

A(n) ________ uses cash or stock award if specific goals are achieved.

performance share plan

A(n) ________ uses cash or stock award that is determined by an increase in stock price at a fixed future date.

phantom stock plan