Which of the following scenarios gives rise to conflicts of interests in corporate governance?

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Excessive executive compensation can also involve a variety of conflicts of interests and cronyism. The board's duties should include ensuring that executives are fairly and not excessively paid. However, all too often, the executive being evaluated and paid also serves as chair of the board of directors. The board is often comprised of members hand-selected by the senior executives. In addition, the compensation board members receive is determined by the chief executive officer, creating yet another conflict of interest. One of the larger concerns to have arisen in recent years has been the cross-fertilization of boards.

Which of the Following Scenarios Gives Rise to Conflicts of Interests