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WorldatWork CECP Exam (page: 3)
WorldatWork Certified Executive Compensation Professional Exam
Updated on: 25-Dec-2025

Viewing Page 3 of 21
CECP PDF 100 Questions

What best describes a necessary skill and/or behavior in relation to business executive?

  1. An understanding of the culture and subcultures of your organization
  2. The capacity to manage multiple projects and priorities and meet deadlines
  3. A willingness to take on additional duties and responsibilities when resources are limited
  4. A thorough understanding of the products and/or services your organization provides

Answer(s): A



What is the most likely explanation for why compensation and rewards require a strong grasp of business executive for compensation professionals?

  1. Because the internal and external environments are constantly changing
  2. Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issues
  3. Because they are emotional issues and stakeholders have many vested interests
  4. Because strong business executive is required for all compensation decisions

Answer(s): C



What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?

  1. Being firm and uncompromising in your decision-making
  2. Representing your view with data and relating it to business results
  3. Finding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking
  4. Giving priority to perspectives based on the job or influence level of the stakeholders

Answer(s): B



What is the primary reason why a compensation professional working for a multinational company should understand regulatory requirements and application of rewards globally?

  1. Because legal compliance with compensation-related regulations is the responsibility of the compensation department
  2. Because the compensation professional has a fiduciary responsibility to ensure that the financial resources of their organization are spent in a prudent manner
  3. Because it is possible to pay significantly less for talent in different countries and compensation should advise management on when and where to locate various jobs within the company
  4. They shouldn't. Due to the complexities of global regulations and practices, compensation administration outside of the home country should be outsourced.

Answer(s): B



You have been asked to develop a short-term incentive plan that motivates employees in business units to increase productivity. Your team has designed a plan that rewards managers and employees quarterly based on achievement against target on measures that should generate productivity increases that will self-fund the plan.
When presenting the plan to senior management, what would be the best strategy to receive approval?

  1. Demonstrate how it is aligned to the rewards philosophy, principles and organizational business strategy
  2. Provide details on the plan design and measures and how they will be administered to employees at different levels
  3. Make the case that a self-funded plan poses no risk to the organization while creating the potential for significant gains
  4. Identify in advance the priorities of the various stakeholders and design your presentation to address any objections or perceptions they may have

Answer(s): A



Viewing Page 3 of 21



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