To Protect Shareholders from Excessive Compensation Practices, Executive Compensation Packages

question 36

Multiple Choice

To protect shareholders from excessive compensation practices, executive compensation packages are best set by:

• A)The board of directors
• B)A committee of primarily outside members of the board of directors
• C)A committee of top management employees
• D)The external auditors

---

Definitions:

Economic Respects

Refers to considerations or aspects related to the economy, including factors like growth, stability, and policies.

Land-grant Colleges

Institutions that have been designated by a state to receive the benefits of the Morrill Acts of 1862 and 1890, intended to support agricultural and technical education.

Tariff Rates

Taxes imposed by a government on imported or exported goods to regulate trade, increase revenue, or protect domestic industries.