Multiple Choice
The board of directors of Clementine Minerals and Mining (CMM) has been challenged by shareholders about the total compensation of the CEO. In order to examine whether the CEO's pay is reasonable, the board of directors is addressing all of the following questions but one. Which question has it most likely chosen to ignore?
A) Would another company hire this CEO?
B) How does the CEO's compensation compare with that of CEOs in other companies in the same industry?
C) What would an investor pay for the CEO's level of performance?
D) Is the CEO's pay more than 20 times higher than the pay of the average employee at CMM?
Correct Answer:
Verified
Correct Answer:
Verified
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