There is a common concern today that executive compensation in the U.S.is:

Question

Quizplus · Accepted Answer

There is significant debate about the effectiveness of the link between executive compensation and corporate performance. Many argue that executive pay should be more closely tied to key strategic performance measures to incentivize and reward executives for achieving long-term goals.

Answer: B  
 Some question the effectiveness of executive compensation as a performance incentive, particularly in cases where CEOs receive large pay packages regardless of their company's performance. Critics argue that executives have too much power to influence the performance measures used to determine their own pay, leading to potential conflicts of interest.

Answer: C  
 All executive compensation paid by U.S. companies is subject to taxation by the Internal Revenue Service (IRS). Firms are required to disclose information about executive pay to the IRS and to shareholders. However, there have been cases where companies have failed to properly disclose executive compensation, leading to controversy and criticism.

Answer: D  
 While there is some variation in executive pay across different industries, research suggests that the larger concern is the overall level of executive compensation in the U.S. compared to other countries. U.S. CEOs, on average, earn significantly more than their counterparts in other countries, even when controlling for company size and performance.

There Is a Common Concern Today That Executive Compensation in the U.S.is