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.

Question

Quizplus · Accepted Answer

The difficulty in determining appropriate executive compensation is not typically due to a lack of comprehensive firm performance data, as compensation committees usually have access to detailed performance metrics. The other options highlight inherent complexities in linking executive actions to firm performance.

Which of the Following Reasons Would NOT Explain the Difficulty