Which of the Following Is True of an Executive Compensation

Multiple Choice

Which of the following is true of an executive compensation plan?

A) The compensation paid to the executives should be linked only to the financial performance of the company.
B) Most compensation plans are two parts: salary and health plan
C) It does not help balancing risk with short-run and long-run incentives.
D) It includes salary, annual incentive compensation, and benefits such as medical benefits, pension plans, and life insurance.