The Three Goals of Executive Compensation Are to Align Management's

question 29

True/False

The three goals of executive compensation are to align management's interest with the shareholders, to keep management from leaving in bad times, and to refrain from giving too much of shareholder profits to management.

---

Definitions:

Breach of Duty

Failure to meet the standard of care or obligation required by law or contract, which could lead to legal action.

Pure Comparative Negligence

A legal doctrine under which damages in an accident are calculated based on the degree of fault of each party, allowing a plaintiff to recover even if they are 99% at fault, but the recovery is reduced by the plaintiff's level of fault.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person.

Losses Total

The complete sum of all financial losses incurred by an entity during a specified period.