SOLVED

296. A comparison of compensation of CEOs in the U.S. with compensation of top executives in Canada and Europe indicates that: A. U.S. CEOs are working for much lower compensation. B. pay for CEOs at major corporations is about the same in all of these nations. C. executives in the U.S. are compensated at a much higher rate. D. U.S. executives are paid better than average when their firms are successful, but worse than average when their firms struggle. 297. According to one of the top management consultants of the past 40 years, the late Peter Drucker: A. top executives are entitled to any level of pay they can negotiate with their board of directors. B. the annual pay for top executives should include a small guaranteed salary and should include a very large bonus in years where the firm earns higher profits than competitors. C. all bonuses paid to CEOs should be tied to long-run increases in market share. D. CEOs should not earn much more than 20 times the earnings of the company’s lowest-paid employee. 298. Over the past several decades, the compensation of CEOs of large U.S. corporations has: A. remained relatively stable once inflation is taken into account. B. become based more on salary and less on stock options. C. increased enormously, even when inflation is taken into account. D. consistently lagged behind the compensation of top executives in Europe and Asia. 299. In some European countries, companies practice co-determination. For example, A. CEOs can only earn their salaries if the company is profitable. B. in some cases, 50% of the board of directors is company workers. C. the CEO compensation is determined by the Stockholders and the government. D. the union representatives and management form a hiring committee to select the CEO. 300. In the past, the compensation of chief executive officers of corporations was based on: A. the assumption that CEOs should be major stockholders of the corporations that they managed. B. a generally accepted principle that CEOs should earn no more than 40 times the compensation of the company’s lowest-paid employee. C. company profitability and increases in the value of their firm’s stock. D. the size of the company. Â