Who establishes executive compensation?

Question

Quizplus · Accepted Answer

The board of directors is responsible for establishing and approving executive compensation packages. This includes determining the salary, bonuses, and benefits for all executives in the company. The board must consider factors such as company performance, executive performance, and market trends when making compensation decisions. Shareholders may also have a say in executive compensation through advisory votes, but ultimately the board is responsible for setting and approving compensation packages. The officers themselves cannot establish their own compensation, and an independent CPA firm may provide advice or analysis but does not have the authority to establish compensation.

Who Establishes Executive Compensation