CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

Regarding corporate governance, which of the following is most likely a reason for concern when evaluating the compensation committee? The compensation committee ______

A. includes members of executive management.
B. purchases shares on the open market to fund stock option commitments.
C. discloses information about compensation paid to executives and board members.
Correct Answer: A

The compensation committee should be independent from executive management.

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