Which of the Following Statements Accurately Describes Cross-National Difference in Senior

question 36

Multiple Choice

Which of the following statements accurately describes cross-national difference in senior executive compensation?

• A) CEO total compensation in the United States is three times as high as the next closest country (Canada)
• B) In U.S. firms, senior executive compensation is usually balanced between 50% variable performance measures connected to stock prices (e.g., stock options) and 50% performance bonuses and base salary
• C) According to one survey, roughly 60% of a top executive's compensation in the United States comes from long-term incentives, with base salary and performance bonuses accounting for 40%
• D) In some countries, such as Germany and the Nordic countries, almost 25%-50% of the compensation earned by executives comes from base salary

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Definitions:

Households Receive

Income earned by individuals or groups through wages, investments, and other sources, often used to describe the inflow of funds to a family unit.

Economic Disruption Events

Occurrences that significantly interrupt the normal course of economic activity, potentially leading to widespread financial impacts.

Price System

A mechanism through which prices are determined for goods and services in an economy, guiding and coordinating economic actions by conveying information about relative market values and scarce resources.

Capital Source

The origins of the funds or assets that are invested in a business or project.