To protect shareholders from excessive compensation practices, executive compensation packages are best set by:
A) A committee of primarily outside members of the board of directors
B) A committee of top management employees
C) The managing director
D) The complete board of directors

Question

Quizplus · Accepted Answer

A committee of primarily outside members of the board of directors is best suited to set executive compensation packages to ensure objectivity and protect shareholders from excessive compensation practices. This approach minimizes conflicts of interest and promotes transparency and fairness.

To Protect Shareholders from Excessive Compensation Practices, Executive Compensation Packages