Which of the Following Statements About CEO Compensation Is Accurate

question 9

Multiple Choice

Which of the following statements about CEO compensation is accurate?

• A) The ratio of CEO compensation to average nonmanagement employee compensation is about 20 to 1.
• B) The average pay of the 200 highest paid CEOs approaches $1 billion.
• C) Unlike employee and lower management compensation, CEO compensation is rarely tied to performance.
• D) According to the text, CEOs work on average fewer hours and at a less frenetic pace than most nonmanagement employees.

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Definitions:

Accord And Satisfaction

Accord and Satisfaction is a legal agreement between parties to settle a dispute by agreeing on a payment that is different from what was originally owed.

Unliquidated Debt

A debt for which the exact amount has not been determined.

Liquidated Debt

A debt for which the amount owed is known and undisputed.

Unliquidated Debt

A debt for which the amount has not been predetermined or agreed upon, often because the extent of damages or compensation cannot be readily quantified.