To Avoid Short-Termism, the Board of a Company Should

question 42

Multiple Choice

To avoid short-termism, the board of a company should:

• A) ensure that the CEO's pay is tied to achieving innovation and efficiency.
• B) focus entirely on quarterly earnings.
• C) focus on immediate pay-offs on investments.
• D) avoid ownership-based governance.

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Definitions:

Reasonable Notice Period

The period of time that employers or employees must give prior to terminating employment, considered sufficient under law or by common practice.

Damages

Compensation claimed by or awarded to a person as a remedy for loss or injury suffered due to another's negligence or wrongdoing.

Independent Contractor

A person or entity contracted to perform work for another entity as a non-employee.

Employment

The condition of having paid work, a job, or a professional occupation.