Which of the following is not characteristic of a compensation and reward system designed to help drive successful strategy execution?
A) Making the performance payoff a major, not minor, piece of the total compensation package
B) Keeping performance incentives and bonuses to less than 15% of total compensation
C) Not skirting the system to find ways to reward effort rather than results and making sure that the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can affect
D) Having incentives that extend to all managers and all workers and generously rewarding people who turn in outstanding performances
E) Tying incentives to performance outcomes directly linked to good strategy execution and financial performance and keeping the time between achieving the target performance outcome and the payment of the reward as short as possible
Answer: B