In Theory,the CEO Hires the Consultant to Perform an Objective

Multiple Choice

In theory,the CEO hires the consultant to perform an objective analysis of the company's executive pay package and to make whatever recommendations the consultant feels are appropriate;however,in practice,which tends to be the case?

A) Shareholders' interests are often placed secondary to the interests of the CEO.
B) This relationship generally leads to a compensation package that is higher than expected.
C) This relationship generally leads to a compensation package that is lower than expected.
D) This relationship has the potential to promote a conflict of interest.