When companies hire new CEOs from other companies,how do they compensate them?
A)approximately the same as individuals who are promoted to CEO from within the company
B)substantially more than individuals who are promoted to CEO from within the company
C)substantially less than individuals who are promoted to CEO from within the company
D)at least 50 times the average median employee salary within the company

Question

Quizplus · Accepted Answer

Companies typically compensate new CEOs hired from outside with substantially more than individuals who are promoted to CEO from within the company. This is because external hires are often seen as having valuable experience and expertise that can help the company grow and succeed. Additionally, companies may use higher compensation packages to entice candidates away from their current roles or to compensate them for potential losses, such as unvested stock options, when they leave their previous employer.

When Companies Hire New CEOs from Other Companies,how Do They