Hinkley Corporation recently filed the following information with the SEC regarding its executive compensation. Base Salaries: We provide competitive base salaries that allow us to attract and retain a high-performing leadership team. Annual Bonus: All executive officers participate in our Company’s Management Incentive Plan (MIP). The MIP is designed to motivate and reward executives by aligning pay with annual performance. Long-Term Incentives: To better align the interests of management with long-term stockholder interests, we provide long-term incentives to executive officers. We deliver long-term incentives typically in the form of stock options. The long-term incentives are designed to reward executives for increasing long-term stockholder value and to retain them at the company.

Instructions
In this chapter, five design choice categories for management compensation were described (long versus short horizon; fixed versus variable bonus; stock- versus accounting-based evaluation; local versus companywide orientation; and cooperative versus competitive schemes). For each of Hinkley’s executive compensation categories listed, identify the design choices made by Hinkley’s board of directors in constructing that component of the company’s management compensation plan.