The Top Management at a New Social Media Technology Company

Multiple Choice

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees. What would be their best approach?

A) Make the performance bonus at least 3 to 4 percent of base salary to have some impact.
B) Make the performance bonus at least 10 to 12 percent of base salary to have some impact.
C) Make the performance payoff equal for average and below-average performers.
D) Set unrealistic performance standards, but with an equally high compensation.
E) Reward people who work very hard, even if they fall short of achieving performance targets.