Which of the Following Reasons Would NOT Explain the Difficulty

Multiple Choice

Which of the following reasons would NOT explain the difficulty of determining appropriate executive compensation?

A) The decisions made by top-level managers are typically complex and nonroutine.
B) An executive's decisions often affect firm performance only over the long run.
C) A number of factors intervene between top-level management decisions and firm performance (e.g., unpredictable economic, social, or legal changes) .
D) The compensation committee may not have comprehensive firm performance data.