SPHR Question #170: Real Exam Question with Answer & Explanation

The correct answer is A. Stock options. Stock options are a long-term incentive tool that aligns executive interest with shareholder value and overall corporate performance. Executives are motivated to improve financial performance because their personal gains are tied to stock price growth. Extract from HRCI-aligned H

Question

Which of the following strategies is used to connect executive performance to organization objectives?

Options

AStock options
BSigning bonuses
CGolden parachute
DCustomized benefits

Explanation

Stock options are a long-term incentive tool that aligns executive interest with shareholder value and overall corporate performance. Executives are motivated to improve financial performance because their personal gains are tied to stock price growth. Extract from HRCI-aligned HR knowledge (Total Rewards domain): The SPHR emphasizes "executive compensation structures such as long-term incentives that link financial results to reward." Stock options, restricted stock units (RSUs), and performance shares are common strategic tools to link organizational success directly to leadership accountability.

Community Discussion

No community discussion yet for this question.

Full SPHR Practice