Compensation for top executives (e.g., CEOs and CFOs) has become more variable over time. For example, recent data show that in large corporations only 20 percent of CFO pay is fixed and 80 percent is variable, based on companywide performance.

Why do you believe this type of reward plan has been chosen for CFOs of large companies?(You may select more than one answer.)

• Because top managers can have significant impacts throughout the entire business.
• unchecked
• Because this type of reward plan will encourage the CFOs to work in a more rational manner.
• unchecked
• Because companies do not have enough funds to pay them.
• unchecked
• Because large companies are willing to pay huge compensation to their CFO.