The structure of Wall Street compensation was criticized on the ground that ________.

Question

Quizplus · Accepted Answer

The question is asking for the criticism of the structure of Wall Street compensation. Option A refers to one criticism, but doesn't address the question of the structure of compensation. Option B is incorrect as it says the annual bonus is nominal, but annual bonuses for bankers and traders on Wall Street are typically very large. Option D is partly true, but it doesn't address the main criticism of the structure of compensation. The best answer is therefore C, as it specifically addresses the issue that the current cash bonus system provides strong incentives for short-term performance but weak incentives for long-term performance, which is a commonly cited criticism of Wall Street compensation.

The Structure of Wall Street Compensation Was Criticized on the Ground