Which of the following statements about the components of executive compensation is true?
A. NYSE listing standards require that the compensation committee be composed of independent directors as well as the CEO.
B. A compensation committee of expert consultants sets the pay of top corporate officers.
C. The annual base salary is usually set near the median salary for leaders at comparable firms.
D. Base salaries are often around $2 million, the amount that the IRS allows as tax deductible.
Answer: C. The annual base salary is usually set near the median salary for leaders at comparable firms.
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Indicate whether the statement is true or false
A major disadvantage of the work sampling method of work measurement is that:
A) observers must be specially trained. B) only one study can be conducted at a time. C) it can be used only in hospital settings. D) a large number of observations are often required.