Exam 13: Corporate Governance in the Twenty-First Century

_____ programs express ownership as a percentage of the gains resulting from the exercise of stock options and other equity-based incentives, such as restricted stock.

Effective boards have well-prepared CEO succession plans in place.

There is little overlap in different world codes of governance.

Outsiders bring a fresh strategic perspective.

CEO compensation is dependent on the compensation of other managers and salaried workers.

Which of the following is a disadvantage associated with stock options?

The key to using incentives is to use the metrics identified with the balanced scorecard and link pay to these outcomes.

Most institutional investors prefer a large majority of insiders on the board.

There is a perception that annual bonuses are the best forms of governance.

What are some of the potential disadvantages to executive ownership?

Discuss the two drawbacks to the bonus-plan incentive.

The corporate governance mechanism that local country laws put in place is the ________.

Provisions in managers' compensation packages that offer significant bonuses when loss of employment is a consequence of an acquisition is known as a golden ________.

Implementing a stock ownership plan can be accomplished in a relatively short period of time.

List the areas covered by codes of governance.

When a firm ties an executive's bonus payouts to long-term performance of the firm rather than to annual performance of the firm, it is instituting long-term ________ plans.

Stock ownership guidelines are usually grouped into two types: traditional programs and ________.

The company that became the largest manufacturer of electronic instruments in the world is ________.

All of the following are corporate governance characteristics except ________.

Poor governance structure frequently provides warning signs prior to organizational scandals.