What Is the Usual Composition of the Compensation Committee

question 87

Multiple Choice

What is the usual composition of the compensation committee?

• A) a subgroup of the Board of Directors including officers of the firm
• B) a subgroup of the Board of Directors who are not officers of the firm
• C) executives from other companies who serve on a committee that is separate from the Board of Directors, but which reports to it
• D) compensation consultants and the head of HR

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Definitions:

Ordinary Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time.

Equal Payments

Regular payment amounts made or received over a period, typically in the context of loans, leases, or annuities, where each payment is of the same value.

Compounded Semiannually

Compounded Semiannually refers to the process of applying interest to an initial amount of money (principal) twice a year, where the amount of interest is added to the principal at each compounding period.

Interest Rate

The percentage of a loan or savings amount that is charged as interest to the borrower or paid to the investor, typically expressed on an annual basis.