One problem with compensation systems is that A. owners sometimes want to pursue social objectives. B. the DoddminusFrank Act of 2010 requires shareholder votes on compensation that are nonminusbinding. C. sometimes a manager is rewarded for an objective other than maximizing profits. D. managers are often paid too much.

Question

Social Studies

Sky

2 April, 14:55

One problem with compensation systems is that A. owners sometimes want to pursue social objectives. B. the DoddminusFrank Act of 2010 requires shareholder votes on compensation that are nonminusbinding. C. sometimes a manager is rewarded for an objective other than maximizing profits. D. managers are often paid too much.

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Answers (1)

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Dwayne Perry · Answer 1

a) sometimes a manager is rewarded for an objective other than maximizing profit

Explanation:

If an employee is using a compensation system it means they are providing monetary and non-monetary benefits to their employees in order to motivate them to work as good as possible and to reach their target.

The compensation is set and given for the work well done.

It can be

Directly financial - monetary compensation for the work, commission, and performance Indirect financial - compensating via paid time-off, various insurance options, stocks, services, concluding, etc Non-financial - satisfaction and praise employees get by finalizing the job

The problem is that this means sometimes workers will be given compensation that was previously set, even if the work is not done in the maximizes quality or goal possible. The company and management might not benefit in the best possible way, they might even gain losses in the long run, yet the employee will be compensated nonetheless.