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You Are a Member of the Compensation Committee of the Board

Question 9

Multiple Choice

You are a member of the compensation committee of the Board of Directors for a national,for-profit organization.When reviewing the compensation package for the current CEO,Jack Sprat,you must consider all the following questions EXCEPT


A) Has Mr. Sprat's performance as a CEO been acceptable to the organization's investors?
B) Is Mr. Sprat's compensation no more than ten times larger than the average annual pay of company employees?
C) Would another company hire Mr. Sprat as a CEO?
D) Is Mr. Sprat's annual compensation consistent with the compensation of executives at competing industry firms?

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