Why might a “bonus cap” for executives be a bad policy for the company? Group of answer choices Executives shouldn’t be allowed to make more than a certain amount. Executives will have incentive to shirk before the cap is reached. Executive will have incentive to shirk after the cap is reached. It will have no impact on executive performance. Because caps will be set too high and executives will lose interest before reaching them.

Why might a “bonus cap” for executives be a bad policy for the company? Group of answer choices Executives shouldn’t be allowed to make more than a certain amount. Executives will have incentive to shirk before the cap is reached. Executive will have incentive to shirk after the cap is reached. It will have no impact on executive performance. Because caps will be set too high and executives will lose interest before reaching them.

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter19: Managing Quality And Performance

Section: Chapter Questions

Problem 3EE

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