What Is the Most Important Factor Driving Executive Compensation

question 34

Multiple Choice

What is the most important factor driving executive compensation?

• A) firm size
• B) firm performance
• C) fraud
• D) political connections on boards

---

Definitions:

Design Changes

Modifications or updates made to the appearance, features, or functions of a product or process.

Subordinates

Employees or team members who are at a lower rank or position than someone else in an organizational hierarchy.

Encode the Message

The process of converting information or ideas into a coded form for communication, ensuring clarity and understanding by the receiver.

Noise in the Process

Unexplained variations or disturbances in a system or process that obscure the desired signal or outcome.