Why Do Critics Argue That High Compensation for Boards of Directors

question 38

Multiple Choice

Why do critics argue that high compensation for boards of directors is a bad thing?

• A)It is too expensive for the organization.
• B)It could cause conflicts of interest between the directors and the organization.
• C)It is not fair to poorly compensated employees.
• D)High pay will render the board less complacent.
• E)Board of director compensation is not a major issue.

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Definitions:

Transfer Payment

Payments made by the government to individuals or other organizations without expecting a good or service in return.

African-American Persons

Individuals of African descent living in the United States, often with a history linked to enslavement and civil rights struggles.

Hispanic Persons

Individuals who identify with, or originate from, Spanish-speaking countries, particularly those in Latin America.

Population in Poverty

the segment of a population living below the nationally or internationally recognized poverty line, indicating their inability to meet basic life needs.