Incentive compensation and performance to strategy execution
What are incentives compensation and performance to strategy execution?
Expert
Incentive compensation for top executives is typically tied to organization profitability, the organization’ s stock price performance, and perhaps such measures as product quality, market share, or consumer satisfaction.
Which performance measures to base incentive compensation on depends on the condition – the priority placed on different financial and strategic points, the requirements for competitive and strategic success, and what specific outcomes are required in various facets of the business to keep strategy execution on track.
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