Why Do Critics Argue That High Compensation for Boards of Directors

question 48

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 negatively related to corporate growth.

---

Definitions:

Court Of Law

A tribunal, often a government institution, where disputes are settled through the legal process.

Appealed

The process of formally requesting a higher authority to reconsider a decision or judgment previously made.

Canadian Government

The federal administration of Canada, consisting of legislative, executive, and judicial branches that govern the country according to its constitution and laws.

Jurisdiction

The official power to make legal decisions and judgments, often referring to the geographical or topical area of responsibility and authority.