Which of the following outlines the usual composition of the compensation committee?
A)a subgroup of the board of directors, including officers of the firm
B)a subgroup of the board of directors who are not officers of the firm
C)compensation consultants without executive management involvement
D)executives from other companies who serve on a committee that is separate from the board of directors, but which reports to it

Question

Quizplus · Accepted Answer

The usual composition of the compensation committee is a subgroup of the board of directors who are not officers of the firm. This ensures that the committee is independent and can make objective decisions regarding executive compensation without any conflicts of interest.

Which of the Following Outlines the Usual Composition of the Compensation