- CFA Exams
- CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 31. Introduction to Corporate Governance and Other ESG Considerations
- Subject 5. Board of Directors and Committees
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 ______
B. purchases shares on the open market to fund stock option commitments.
C. discloses information about compensation paid to executives and board members.
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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