To Be Successful in a Court Challenge Regarding an Executive's

question 28

Multiple Choice

To be successful in a court challenge regarding an executive's compensation,shareholders must prove that:

• A) the board was grossly uninformed before it set the compensation amount.
• B) the executive's performance caused the business to become unprofitable.
• C) the amount of the executive's compensation was too high in relation to the compensation of the typical employee within the company.
• D) the compensation level is not in the company's best interests.