Which of the following is not a financial incentive?

The correct answer is Option (1) → Status

Financial incentives are monetary rewards used to motivate employees. Examples include:

• Bonus – extra payment for good performance.

• Perquisites – fringe benefits like a car, house, or medical allowance.

• Stock option – the right to buy company shares at a discounted rate.

Status, on the other hand, is a non-financial incentive because it satisfies psychological and social needs such as prestige, recognition, and respect, rather than providing direct monetary gain.