The CEO of Skyco, a publicly traded company that has been earning below-average returns, has been publicly criticized by shareholders for persuading the board of directors to give her interest-free loans, for having the company purchase and furnish a lavish apartment in Paris for her personal use on her twice-yearly trips there, and for excessive stock options.The CEO's behavior may be an indication of:
A) reasonably compensating a CEO.
B) a weak board of directors.
C) the laxity of institutional investors.
D) the difference in risk propensity between owners and managers.
Correct Answer:
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