XYZ Pharmaceuticals Recently Announced That the Clinical Trials for a Cancer

question 2

Multiple Choice

XYZ Pharmaceuticals recently announced that the clinical trials for a cancer drug failed to cure the illness.This announcement led to a dramatic decrease in the stock value of the company.The company hired a new CEO two years ago when the clinical trials for this drug had already initiated.Which one of the following is true about the compensation of the CEO of XYZ Pharmaceuticals?

• A)The CEO should receive lower compensation since shareholder returns have been declining.
• B)The CEO was not involved in the decision of the failed initiative; therefore he/she should not receive lower compensation.
• C)Each company handles this situation differently.
• D)The compensation of this CEO depends only on pretax profit margins.

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Individuals related by blood, marriage, or adoption, considered as close relatives or part of one's immediate household.

Perpetrated

Committed or carried out; usually refers to the act of committing a harmful, illegal, or immoral act.

Discloses Sexual Abuse

The act of revealing or reporting an experience of sexual abuse, often in the context of seeking help, support, or justice.

Counselor

A professional who provides guidance and support to individuals dealing with personal, social, or psychological challenges.