SPHR · Question #170
Which of the following strategies is used to connect executive performance to organization objectives?
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…
Question
Which of the following strategies is used to connect executive performance to organization objectives?
Options
- AStock options
- BSigning bonuses
- CGolden parachute
- DCustomized benefits
How the community answered
(27 responses)- A89% (24)
- B7% (2)
- C4% (1)
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.
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