Which of the following statements about financial metrics is NOT a factor that an HR professional should take into account in devising a compensation program for employees:
a. Equity-based metrics for performance allow for a direct correlation between employees and the goal of maximizing shareholder value.
b. Financial metrics like EBITA and ROIC are the most efficient tool for rewarding performance because they are easy to explain and comprehensible to the average employee.
c. Managerial employees often are willing to accept a higher degree of risk in their compensation program through equity than lower paid employees.
d. HR managers must take a Goldilocks-like approach in finding a mix of compensation and performance metrics that balances competing interests and employee preferences.