Question

Incentive or variable pay is defined as compensation other than​ ________ that​ fluctuate(s)
according to​ employees' attainment of some​ standard, such as
a) a​ pre-established formula,
b) individual or group​ goals,
c) or company earnings.

Answer 1

Answer:

The correct answer is a) a pre-established formula

Explanation:

The pre-established formula in this case refers to the fixed salary that a worker earns, while a variable payment is a payment that is effective if a certain condition other than going to work is attained.

This structure of payment is very common for CEOs. CEOs usually have a fixed annual salary, and also a variable salary or bonus that depends on their performance (which is measured by the economic profit of the firm).