Executive Compensation Is a Governance Mechanism That Seeks to Align

question 129

True/False

Executive compensation is a governance mechanism that seeks to align the interests of managers and owners through salaries, bonuses, and long-term incentive compensation such as stock awards and options.

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Definitions:

Ratification

The formal approval or confirmation of an act or agreement that was initially unauthorized, making it officially valid.

Ratified

The process of formally approving or confirming a previous act or decision, making it officially valid.

Disaffirmed

The act of denying, rejecting, or nullifying an agreement or contract, especially by a minor.

Intoxicated People

Individuals under the influence of alcohol or drugs to a degree that impairs their abilities and decision-making capacities.