Kindly ask the question below

Kindly ask the question below

The board of directors of Crossedcurrents, Inc. will hold its quarterly meeting next week. One of the items on the agenda is a revision to the management incentive compensation program (ICP). Currently, the ICP provides that incentive bonuses will be based on the year-to-year change in quarterly net profits shown in the company’s Forms 10-Q and, for the fourth quarter, Form 10-K filed with the SEC. If profits go down, there will be no bonuses. Bonuses can be paid four times a year. The proposal is to change the metric from annual changes in the Forms 10-Q to an annual target set at the beginning of the year and measured using a non-GAAP calculation of “business profits.” Crossedcurrents, Inc. is a U.S. company with no international operations. It is publicly traded. Required: Using the decision-making model and Kant’s version of deontology, evaluate the decision the board of directors must make regarding the proposed change to the ICP.

 

 

 

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Crossedcurrents Incentive Compensation Program
Facts
Crossedcurrents is about to hold one of the company’s quarterly meetings. Among the agendas, is a change of bonus compensation approaches from dependence on the company’s earnings, to dependence on the employees’ success in meeting targets set at the beginning of the year. Currently, the achievements by the company are reviewed at the end of the year

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