Final answer:
The company likely used Tournament Theory as the compensation model, where competing for a high-level position serves as the incentive for performance among managers.
Step-by-step explanation:
In this scenario, where Yolanda has become CEO after a series of competitions among top-level managers, the most applicable compensation theory is likely Tournament Theory. According to Tournament Theory, instead of compensation being directly linked to individual output or performance, it is tied to the relative ranking within a competitive process. The idea is that high-level positions are awarded to the winners of these competitions, much like a tournament, with the positions themselves being the prizes. This is used to motivate managers to perform better since they know that a very valuable prize (a higher position in the company, in this case, the CEO role) is at stake.