Which one of the following is not a reason why executive compensation is a complicated governance mechanism?
A) A number of other factors affect a firm's performance besides top-level managerial decisions and behaviour.Unpredictable economic, social or legal changes make it difficult to discern the effects of strategic decisions.
B) The strategic decisions made by top-level managers are typically complex and non-routine, so direct supervision of executives is inappropriate for judging the quality of their decisions.
C) An executive's decision often affects a firm's financial outcomes over an extended period, making it difficult to assess the effect of current decisions on the corporation's performance.
D) The market for quality top executives is strong and sometimes firms have to go out of their way to retain talented top executives.
Correct Answer:
Verified
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A)a threat and an opportunity
B)a
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A)Board
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A)greater experience in
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A)electing directors, supervising CEO and
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