What Is the Advantage of Compensation Deferment Until Retirement for a CEO

question 32

Multiple Choice

What is the advantage of compensation deferment until retirement for a CEO?

• A)The CEO can benefit from interest rates until retirement.
• B)After retirement,the company's stock value will probably be higher.
• C)The CEO's income taxes will probably be lower after retirement,so that deferring payment should lead to lower taxation.
• D)The CEO will have enough time to make progress on reaching the company's strategic goals.

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Definitions:

Physical Symptom

A noticeable change in the body that indicates a condition or disease.

Depression

A syndrome of mental disturbance characterized by persistent feelings of unhappiness or indifference toward life, seriously impairing regular daily life.

Major Depressive Episode

A period characterized by severe symptoms of depression, such as deep sadness, loss of interest in activities, and changes in appetite or sleep, lasting for at least two weeks.

Major Depression

A mood disorder characterized by a persistent feeling of sadness, loss of interest, and a lack of pleasure in life.