Which of the following facts about executive compensation is TRUE?

Question

Quizplus · Accepted Answer

CEO compensation has increased more rapidly than the wages of the other corporate employees, which has led to growing income inequality within companies and in society as a whole. This fact has been widely reported and documented by numerous studies and reports.

(Note: the other statements are either incorrect or incomplete. A is false - the compensation of the top five earners within public companies is typically disclosed. B is incomplete - officers may be permitted to hedge their stock and option awards depending on the company's policies and the terms of the awards. D is misleading - simply aligning compensation to share price may not necessarily align management to shareholders' best interests, as share price alone does not capture all dimensions of value creation or preservation.)

Which of the Following Facts About Executive Compensation Is TRUE