An Organization Is Creating an Incentive Pay Plan for Its

Multiple Choice

An organization is creating an incentive pay plan for its global executives. Due to time pressures, the HR Director is not able to perform a complete analysis as to the measures that should be evaluated for each executive. Therefore, since the focus of the organization this year is on meeting revenue targets in order to reach break-even in 2 years, the HR Director and CEO recommend to the Board of Directors an incentive plan for each executive tied to this year's revenue only. Which of the following statements is true in regards to the incentive pay plan?

A) This is not an effective executive incentive pay plan because it does not have a sunset clause
B) This executive incentive pay plan is not a win-win situation
C) This is not an effective executive incentive pay plan because it does not incorporate goals line of sight
D) This is not an effective executive incentive pay plan because it does not aligned with the organizational goals and objectives