Executive Compensation Is Considered an External Corporate Governance Mechanism Because

question 47

True/False

Executive compensation is considered an external corporate governance mechanism because it is determined in part by market forces.

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Definitions:

Shocks

Unexpected or sudden events that disrupt the current state of affairs, often leading to significant changes.

Turnover

The rate at which employees leave a workforce and are replaced by new employees, which can impact an organization's performance and continuity.

Content Of Work

The actual tasks, responsibilities, and activities that make up a job or position.

Absence

The state of being away or not present in a particular place or situation.