- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 3. Corporate Governance Risks and Benefits
CFA Practice Question
An investment analyst would likely be most concerned with an executive remuneration plan that is ______
B. performance-based and pays in full every year regardless of the company's results.
C. comparable to those of the company's close competitors.
A. based on incentives from the current period in the company's life.
B. performance-based and pays in full every year regardless of the company's results.
C. comparable to those of the company's close competitors.
Correct Answer: B
Investors should question the rigor of the performance hurdles underlying the awards.
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