Which of the Following Statements Is True Regarding a Merit-Based

Multiple Choice

Which of the following statements is true regarding a merit-based pay plan?

A) It bases pay levels on how many skills employees have or how many jobs they can do.
B) It is also called competency-based pay plan.
C) High performers can get bigger raises.
D) It distributes compensation based on an established formula designed around a company's profitability.
E) A typical merit-based pay plan provides no base salary and pays the employee only for what he or she produces.