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When Calculating a "Deserved Pay" for CEOs Based Upon Earnings

Question 97

Multiple Choice

When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return,financial research firm Obermatt found that


A) there is a negative correlation between CEO pay and company performance.
B) there is a positive correlation between CEO pay and company performance.
C) there is no correlation in the 100 S&P companies between CEO pay and company performance.
D) CEO pay packages were rejected by 90% of shareholders.
E) most compensation systems were aligned with the interests of shareholders.

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