What is the role of a compensation committee of the board of directors?
A)to make recommendations to the board of directors on overall pay policies, salaries for top officers, stock options, and additional perks for executives
B)to develop a compensation package that ties the organization's overall compensation system to the organization's goals and objectives
C)to assist the HR unit in developing overall pay and benefit programs for the organization
D)to make recommendations to the shareholders on the compensation formula for members of the board of directors

Question

Quizplus · Accepted Answer

The compensation committee of the board of directors is typically responsible for making recommendations to the board of directors on executive compensation policies, including salaries, stock options, and other perks. They are specifically focused on the compensation for top officers rather than developing overall compensation programs for the organization or making recommendations to shareholders on the compensation formula for board members.

What Is the Role of a Compensation Committee of the Board