Question: QUESTION THIRTEEN (3+3=6 marks ) Below is an extract from the Woolworth Remuneration Report for 2022 which shows that CEO remuneration is linked to both

QUESTION THIRTEEN (3+3=6 marks ) Below is an extract from the Woolworth Remuneration Report for 2022 which shows that CEO remuneration is linked to both Sales and Customer Satisfaction. Short-Term Incentive (STI) 50% of the STI is delivered in cash and the remaining 50% is deferred in share rights for two years. Business performance is measured through a sTI balanced scorecard, with 60% weighted on financial objectives and 40% on non-financial objectives: . Sales (20\%) - Earnings Before Interest and Tax (EBIT), before significant items (20\%) . Working Capital Days (20\%) . Customer Satisfaction (20\%) . Safety (20\%). Individual performance includes assessment against business, strategic and ways of working goals and core values. Required Which of Sales and Customer Satisfaction is likely to be (a) most sensitive in the measurement of CEO performance ( 3 marks) and (b) most precise in the measurement of CEO performance (3 marks). Explain why. QUESTION THIRTEEN (3+3=6 marks ) Below is an extract from the Woolworth Remuneration Report for 2022 which shows that CEO remuneration is linked to both Sales and Customer Satisfaction. Short-Term Incentive (STI) 50% of the STI is delivered in cash and the remaining 50% is deferred in share rights for two years. Business performance is measured through a sTI balanced scorecard, with 60% weighted on financial objectives and 40% on non-financial objectives: . Sales (20\%) - Earnings Before Interest and Tax (EBIT), before significant items (20\%) . Working Capital Days (20\%) . Customer Satisfaction (20\%) . Safety (20\%). Individual performance includes assessment against business, strategic and ways of working goals and core values. Required Which of Sales and Customer Satisfaction is likely to be (a) most sensitive in the measurement of CEO performance ( 3 marks) and (b) most precise in the measurement of CEO performance (3 marks). Explain why
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