Asked by Isaiah Drayton on Jul 18, 2024
Verified
Why do critics argue that high compensation for boards of directors is a bad thing?
A) It is too expensive for the organization.
B) It could cause conflicts of interest between the directors and the organization.
C) It is not fair to poorly compensated employees.
D) High pay will render the board less complacent.
E) Board of director compensation is negatively related to corporate growth.
Compensation
The total of all rewards provided to employees in return for their services, including salary, benefits, bonuses, and other forms of payment.
Conflicts of Interest
Situations where a person or organization could potentially benefit personally from their actions or influence, which might compete with their duties or the interests of their employer or clients.
Corporate Growth
The expansion of a company's market share, revenue, size, or production capabilities, often seen as a measure of success.
- Understand the critical debates surrounding high compensation for board of directors.
Verified Answer
Learning Objectives
- Understand the critical debates surrounding high compensation for board of directors.
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