When Greater Aircraft acquired Middling Aircraft, the executives of the two comp
ID: 410419 • Letter: W
Question
When Greater Aircraft acquired Middling Aircraft, the executives of the two companies identified key employees they needed for the combined companies' success. One of them was Michael, the vice president of engineering. The executives offered Michael a one-time bonus of $25,000 if he stayed with Greater Middling for 12 months following the acquisition. In this scenario, Michael's the $25,000 represents _____.
a commission
a retention bonus
stock options
merit pay
a differential piece rate
a commission
a retention bonus
stock options
merit pay
a differential piece rate
Explanation / Answer
Other options apart from retention bonus does not apply to this situation.
As it was a one time pay it can be seen as a retention bonus, as the pay was valid only when he remained with the company for 12 months.
Hence option B : A retention bonus.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.