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13-01-2020
Business

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Who establishes executive compensation?

a. The shareholders.
b. The board of directors.
c. An independent CPA firm.
d. The officers themselves.

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khaqanelahi khaqanelahi

14-01-2020

Answer:

The correct answer is b. The board of directors.

Explanation:

The board of directors establishes executive compensation. Compensation includes all type of benifits such as salary, house rent, car, dearness allowance, paid leaves, medical reimbursement, group life insurance, traveling allowance etc.

The executive includes senior managment namely CFO, CIA, CEO, Head of HR, Head of internal audit etc.

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