Which of the following is true of top management compensation? Compensation comm

Question

Which of the following is true of top management compensation?

Compensation committees are working with boards of directors and CEOs to detach salary from performance because it isn't fair to hold top managers solely responsible for the company's performance.

Stakeholders give top management perks and special treatment for doing a good job.

Many firms are trying to align CEO compensation with performance.

If a company performs poorly, the CEO is given higher pay to motivate him or her to work harder to improve performance.

Stockholders and key stakeholders support paying CEOs higher salaries because they recognize the importance of capable leadership.

Explanation / Answer

Out of all the given options, Stockholders and key stakeholders support paying CEOs higher salaries because they recognize the importance of capable leadership is true of top management compensation.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.