The Changes in the Ways in Which CEOs and Senior

question 32

Multiple Choice

The changes in the ways in which CEOs and senior executives have been compensated in recent decades,particularly the growth of share options and performance incentives have:

• A)Done much to align the interests of top management with those of shareholders
• B)Provided major incentives for CEOs to manipulate and mis-report financial performance
• C)Greatly boosted compensation while doing little to align the interests of CEOs and shareholders
• D)Helped t ensure that market forces determine executive compensation

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Definitions:

Banking

The business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.

Airlines

Companies that operate aircraft for transporting passengers and cargo from one place to another.

General Electric

A multinational conglomerate corporation that operates in various sectors like energy, healthcare, and aviation, known for its innovation and diversified products.

Antitrust Suit

Legal actions taken by governments against companies to prevent monopolistic practices and promote competition in the marketplace.