Which of the following is a strategy used by Costco?
A. outsourcing all administrative tasks to reduce HR costs
B. focusing on short-term profits to benefit stockholders
C. offering the CEO a high salary and few stock options
D. paying high wages to retain good employees
Answer:D
Which of the following is a strategy used by Costco?
A. outsourcing all administrative tasks to reduce HR costs B. focusing on short-term profits to benefit stockholders C. offering the CEO a high salary and few stock options D. paying high wages to retain good employees
Explanation: D) For years, Wall Street analysts have criticized Costco's management for paying high wages and keeping employees around for a long time, but Costco's CEO believed that it was strategic for long term growth and success to keep good employees. The CEO gets a compensation package that includes a relatively low salary and bonus but a much larger amount in stock options.