​Straight line pay for performance

A) ​Eliminates the managers' incentives to lie about the budget
B) Eliminates the perverse incentive to hide information
C) Does not link compensation to meeting a budget target
D) ​All of the above

Straight Line Pay

Compensation structure where employees receive a fixed, regular payment or salary, typically without variation for actual hours worked or performance levels.

Managers' Incentives

Various forms of compensation and rewards designed to motivate managers to align their actions with the objectives of the owners or shareholders.

Perverse Incentive

An incentive that unintentionally encourages negative or undesired behaviors, leading to outcomes that are contrary to the initial intentions.