The amounts of executive compensation and bonuses are often determined by
A)auditor's recommendations.
B)evaluations by subordinates.
C)company contracts.
D)industry guidelines.

Question

Quizplus · Accepted Answer

The amounts of executive compensation and bonuses are typically determined by company contracts, which outline the terms of employment and compensation for top-level executives. These contracts are often negotiated between the executive and the board of directors or compensation committee. While industry guidelines may provide some guidance, ultimately the compensation and bonus packages are based on the specific company's policies and internal considerations. The auditor's role is primarily to ensure that the compensation is accurately reported in financial statements, but they do not typically determine the amount of compensation awarded. Subordinate evaluations may be used as a component of performance-based compensation, but they do not solely determine the amount awarded.

The Amounts of Executive Compensation and Bonuses Are Often Determined