Which of the following indicates a sustained or exceptional performance reward?

The correct choice highlights the value of formal letters of recognition as a means to indicate sustained or exceptional performance. This type of recognition is significant because it provides tangible acknowledgment of an individual's contributions over time, affirming their dedication and excellence in their role.

Formal letters can often be shared publicly or included in personnel files, serving as a lasting reminder of the employee’s accomplishments. This form of acknowledgment not only motivates the individual but also sets a standard for others in the organization, fostering a culture of appreciation and high performance.

In contrast, an annual salary increase, while important, typically correlates more with cost-of-living adjustments or market rate adjustments rather than being a direct acknowledgment of exceptional performance. Peer reviews can be valuable feedback tools, but they may not provide the formal recognition that signifies sustained excellence. Random feedback sessions are often informal and contingent on situational factors, lacking the structured and lasting impact that formal letters of recognition deliver.