Which statement about the annual base pay for an executive is true? A. It is ver
ID: 337989 • Letter: W
Question
Which statement about the annual base pay for an executive is true?
A. It is very easy to set the annual base pay for a CEO because of the predictability of internal and external factors.
B. A target plan bonus ties cash bonuses to the executive attaining specific performance criteria.
C. For most executives, annual base pay represents a small part of their total compensation.
D. The IRS does not limit the amount of an executive's annual pay that can be categorized as a business expense.
E. It takes a short amount of time before the strategic decisions taken by a CEO pay off, thus justifying the CEO's salary.
Explanation / Answer
Which statement about the annual base pay for an executive is true?
A. It is very easy to set the annual base pay for a CEO because of the predictability of internal and external factors.
B. A target plan bonus ties cash bonuses to the executive attaining specific performance criteria.
C. For most executives, annual base pay represents a small part of their total compensation.
D. The IRS does not limit the amount of an executive's annual pay that can be categorized as a business expense.
E. It takes a short amount of time before the strategic decisions taken by a CEO pay off, thus justifying the CEO's salary.
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