Which of the Following Is True of Excessive Compensation Packages

question 71

Multiple Choice

Which of the following is true of excessive compensation packages?

• A)When executive compensation is tied to stock price, executives have a strong incentive to focus on long-term corporate interests rather than short-term stock value.
• B)When huge amounts of compensation depend on quarterly earnings reports, there is a strong incentive to manipulate those reports in order to achieve the money.
• C)Economic fairness and personal morality always exists in executives receiving lofty compensation packages.
• D)Excessive compensation packages serve corporate interests when they provide an incentive that is not based on executive performance or accomplishments.

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