Executive compensation packages often include a base salary, an annual incentive, and a longterm incentive. What role do accounting numbers have on these incentives?

A. Nearly all companies use performance plans that are tied to accounting numbers

B. Return on equity and earnings per share are the most common accounting measures used in both annual and longterm performancebased plans.

C. Earnings growth translates into increased shareholder value, increasing the value of stock options to managers.

D. All of the above