When Calculating a "Deserved Pay" for CEOs Based Upon Earnings

question 84

Multiple Choice

When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return,financial research firm Obermatt found that

• A) there is a negative correlation between CEO pay and company performance.
• B) there is a positive correlation between CEO pay and company performance.
• C) there is no correlation in the 100 S&P companies between CEO pay and company performance.
• D) CEO pay packages were rejected by 90% of shareholders.
• E) most compensation systems were aligned with the interests of shareholders.

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Definitions:

Class Exploitation

The manipulation or unfair use of a lower social class by a higher one, often for economic gain.

Parties

In Weber’s usage, are organizations that seek to impose their will on others.

Political Groups

Organizations or collectives that seek to influence public policy, political opinion, or government decisions based on specific ideological, economic, or social beliefs.

Intellectual Elite

A segment of society composed of individuals with high intellectual achievements and capacities, often involved in complex decision-making or high-level reasoning tasks.