10.

With respect to executive pay, which of the following is not correct?

Multiple Choice

• Top executive bonus opportunities have a maximum payout of 200%.

• The proportion of pay "at risk" falls off steeply for executives on lower rungs of the corporate ladder.

• Most executive compensation packages involve a base salary, an annual incentive, and a long-term incentive.

• Long-term incentives are designed to counterbalance the inherently short-term orientation of other incentives.