Question

Manu Priya is working as the Human Resource Manager of EDT Limited at an annual salary of ₹ 8 lakh per annum and is also offered shares of the company at a set price, which is lower than the market price. The method being used to calculate the compensation provided to her is ______.

Options

• Time-based direct financial payment

• Indirect financial payment

• Time-based Pay Plus incentives

• Performance-based direct financial payment

Answer 1

Manu Priya is working as the Human Resource Manager of EDT Limited at an annual salary of ₹ 8 lakh per annum and is also offered shares of the company at a set price, which is lower than the market price. The method being used to calculate the compensation provided to her is time-based pay plus incentives.

Explanation:

Manu Priya receives a fixed annual salary of ₹ 8 lakh, which is a time-based payment (paid for her work over a period, like per month or year). In addition, she is offered company shares at a lower price, which is an incentive given to motivate and reward her performance. Hence, her compensation includes both time-based pay and incentives, making it time-based pay plus incentives.