Which of the following represent formal criteria for defining executive status?
A)board of directors and key employees
B)key employees and highly paid employees
C)CEO and highly compensated employees
D)key employees and highly compensated employees

Question

Quizplus · Accepted Answer

The formal criteria for defining executive status are typically based on two factors: an individual's level of responsibility within the organization and their compensation. Key employees can be defined based on their level of responsibility, while highly compensated employees are identified based on their earnings. Therefore, option D, which includes both key employees and highly compensated employees, is the best choice. Option A is incorrect, as the board of directors may not necessarily be considered executives. Option B is incorrect because highly paid employees may not have executive-level responsibility. Option C is also incorrect because it only includes the CEO and highly compensated employees, which is too limited of a definition.

Which of the Following Represent Formal Criteria for Defining Executive