In theory, the CEO hires the consultant to perform an objective analysis of the company's executive pay package and to make whatever recommendations the consultant feels are appropriate; however, in practice, which tends to be the case?
A) Shareholders' interests are often placed secondary to the interests of the CEO.
B) This relationship generally leads to a compensation package that is higher than expected.
C) This relationship generally leads to a compensation package that is lower than expected.
D) This relationship has the potential to promote a conflict of interest.
Answer: D
You might also like to view...
When applying a pattern, we don't need to have a description of classes or objects that participate in the pattern
Indicate whether the statement is true or false
Changes in an estimate, such as a change in the estimated useful life of an asset for depreciation purposes, affect consistency but not comparability, and therefore require an explanatory paragraph in the audit report
Indicate whether the statement is true or false