Explicit Employment Contracts Are More Likely to Be Used by Companies

question 48

Multiple Choice

Explicit employment contracts are more likely to be used by companies while hiring CEOs when:

• A) the CEO was promoted from within the company instead of being hired from outside.
• B) the CEO has served a number of years on the company's board of directors.
• C) the company environment and employment situation was risky for the CEO
• Because of uncertainty.
• D) the CEO received lesser-than-normal compensation, much of which constituted the basic fixed pay.