- CFA Exams
- 2021 CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 31. Introduction to Corporate Governance and Other ESG Considerations
- Subject 8. Analyst Considerations in Corporate Governance and Stakeholder Management
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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